TOWN OF JACKSON, WYOMING

TOWN OF JACKSON, WYOMING Comprehensive Annual Financial Report

YEAR ENDED JUNE 30, 2008

TOWN OF JACKSON

Comprehensive Annual Financial ReportTable of ContentsJune 30, 2008 INTRODUCTORY SECTION Page

Letter of Transmittal 1GFOA Certificate of Achievement for Excellence in Financial Reporting 4Organization of Services Chart 5Elected Officials and Administrative Personnel 6

FINANCIAL SECTIONIndependent Auditor's Report 7Management's Discussion and Analysis (Unaudited) 9Basic Financial Statements Government-wide Financial Statements

Statement of Net Assets 19Statement of Activities 21

Fund Financial StatementsBalance Sheet - Governmental Funds 22Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 23Statement of Revenue, Expenditures and Changes in Fund Balances - Governmental Funds 24Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to

the Statement of Activities 25Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 26Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - START Bus System Fund 27Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Affordable Housing Fund 28Statement of Net Assets - Proprietary Funds 29Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 31Statement of Cash Flows - Proprietary Funds 32

Notes to the Financial Statements 34Combining Individual Fund Statements and Schedules

Nonmajor Governmental FundsCombining Balance Sheet - Nonmajor Governmental Funds by Fund Type 49Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Fund Type 50Combining Balance Sheet - Nonmajor Special Revenue Funds 51Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds 52Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Nonmajor Special Revenue Funds 54Combining Balance Sheet - Nonmajor Capital Projectd Funds 57Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Projects Funds 58

(continued)

TOWN OF JACKSON

Comprehensive Annual Financial ReportTable of ContentsJune 30, 2008 (continued)

Internal Service FundsCombining Statement of Net Assets - Internal Service Funds 59Combining Statement of Revenues, Expenses and Changes Fund Net Assets - Internal Service Funds 60Combining Statement of Cash Flows - Internal Service Funds 61

Other Supplementry SchedulesSchedule of Revenues (Sources) and Expenditurres (Uses) - General Fund 63

STATISTICAL SECTION (unaudited)Financial trends

Net Assets by Component - Last Six Fiscal Years 67Changes in Net Assets - Last Six Fiscal years 68Fund Balances of Governmental Funds - Last Six Fiscal Years 70Changes in Fund Balances of Governmental Fund - Last Six Fiscal Years 71

Revenue capacityTax Revenues by Source - Last Ten Fiscal years 72Unrestricted State Intergovenmental Revenues by Program - Last Ten Fiscal Years 73Tax Capacity and Estimated Market Value of all Taxable Property - Last Ten Fiscal Years 74Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 75Taxable Sales - Last Seven Years 76

Debt capacityLegal Debt Margin Information - Last Ten Fiscal Years 77Schedule of Revenue Bond Coverage - Water Fund 78

Demographic and economic informationConstruction and Bank Deposits - Last Ten Years 79Demographic & Economic Statistics 80Demographic Statistics - US Census Data 81

Operating informationFull-time Equivalent Town Employees by Function/Program - Last Ten Fiscal Years 82Operating Indicators by Function - Last Six Fiscal Years 83Capital Asset Statistics by Function - Last Three Fiscal Years 84

GOVERNMENT AUDIT REPORTSIndependent Auditor's Reporting Requirements and Other Communications Required Under the Single Audit Act as Amended in 1996

Report obn Compliance and on Internal Control over Financial Reporting based on an Audit of Financial Statements Performed in in Accordance with Government Auditing Standards 85Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 86Schedule of Findings and Questioned Costs and Schedule of Expenditures of Federal Awards 87

TOWN OF JACKSON WYOMING

Robert W. McLaurin Wayne W. Oberg Town Manager Finance Director

Roxanne DeVries Robinson Melanie Adams Assistant Town Manager Finance Manager

Prepared by Departments of Administration and Finance

COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2008

Letter of Transmittal TOWN OF JACKSON

Administration and Finance December 23, 2008 To the Honorable Mayor, Members of the Town Council, and the Citizens of the Town of Jackson: Wyoming statutes require all cities, towns, and counties to issue an annual report on its financial position and activity prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed certified public accountants or the Office of State Audit. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Town of Jackson for the fiscal year ended June 30, 2008. The report consists of management’s representations concerning the finances of the Town of Jackson. Consequently, management assumes full responsibility for the completeness and reliability of all information presented in this report. To provide a reasonable basis for making these representations, management of the Town of Jackson has established a comprehensive internal control framework that is designed both to protect the town’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Town of Jackson’ financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town of Jackson comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The Town of Jackson’ financial statements have been audited by Thompson, Palmer and Associates, P.C., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town of Jackson for the fiscal year ended June 30, 2008, are free of misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Town of Jackson’s financial statements for the fiscal year ended June 30, 2008, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town of Jackson’s MD&A can be found immediately following the report of the independent auditor. PROFILE OF THE GOVERNMENT The Town of Jackson, incorporated in 1914, is located in Teton County near the Wyoming and Idaho border south of the Grand Teton and Yellowstone National Parks. The town currently has a land area of nearly ten square miles and a population of 9,631. The Town of Jackson is empowered to levy a property tax on both real and personal properties located within its boundaries. It is also empowered by state statute to extend its corporate limits by annexation, which is done periodically when deemed appropriate by the town council. The Town of Jackson is governed by city code under Wyoming Statutes with a council-mayor form of government. Policy-making and legislative authority are vested in a town council consisting of the mayor and four council members. The town council is responsible, among other things, for passing ordinances, adopting the budget, appointing commissions, authorities, and committees, and hiring both the town manager and town attorney. The town manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the town government, and for appointing the heads of the various departments. The council is elected on a non-partisan basis. All four council members and the mayor are elected at large. Council members serve staggered four year

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terms, with elections occurring every even year. The mayor serves a two year term, with elections occurring every even year. The Town of Jackson provides a full range of services, including police and fire protection; construction and maintenance of streets and infrastructure; recreational facilities and pathways, water, sewage, and transit services. Additionally, the town owns rental properties for employees. The annual budget serves as the foundation for the Town of Jackson’s financial planning and control. All departments, authorities, and commissions of the town submit requests for appropriation to the town manager in March of each year. The town manager uses these requests as the starting point for developing a proposed budget. The town manager then presents this proposed budget to the council for review prior to May 15. The council is required to hold public hearings on the proposed budget and to adopt a final budget by no later than June 30, the close of the town’s fiscal year. The appropriated budget is prepared by fund, function (e.g., public safety), department (e.g., police), and division (e.g., patrol). Department heads may make transfers of appropriation within a departmental division. Transfers of appropriations between funds and departments, however, require the special approval of the town council. Budget-to-actual comparisons are provided in this report for each individual governmental fund and proprietary fund for which an appropriated annual budget has been adopted. For the general fund and major special revenue funds, this comparison is presented on page 26 as part of the basic financial statements of the governmental funds. For non-major special revenue funds, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report, which starts on page 54. FACTOR AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Town of Jackson operates. Local economy. The Town of Jackson is located at the southern entrance to Grand Teton and Yellowstone National Parks in the northwest corner of Wyoming. Dramatic mountain peaks, including the Tetons, the Gros Ventres, and Snow King form a dramatic backdrop to our valley (called Jackson Hole). The Town of Jackson is home to approximately 10,000 people and another 10,000 live in the unincorporated county (Teton). Jackson’s economy is centered around tourism and lifestyle. Approximately 3 million guests visit each year and more than 400,000 skier days are tallied at the Jackson Hole Mountain Resort. The abundance of outdoor recreation

opportunities, the unsurpassed scenic beauty, the prevalence of many species of wildlife, the lack of individual state income tax, and the high quality of life give Jackson unsurpassed appeal as a place to live, visit and recreate. The Town of Jackson’s employment picture is healthy with a 1.9% unemployment rate (Teton County), while the state has an unemployment rate of 3.2%.

FINANCIAL INFORMATION Management of the town is responsible for establishing and maintaining internal control designed to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting data are complied to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. Internal control is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. This report consists of management’s representations concerning the finance of the town. As a result, management assumes full responsibility for

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the completeness and reliability of all the information presented in this report. Management asserts that, to the best of their knowledge and belief, this financial report is complete and reliable in all material respects. Long-term financial planning. As a resort community, the town continues to work at achieving goals while balancing the concerns of various stakeholders. The town’s strategic vision is generally known as the “Town of Jackson Statements of Strategic Intent.” They define the town’s strategic intent and identify areas for additional emphasis. The town’s near-term and long-term fiscal planning are focused on accomplishing strategic intent objectives. A five year financial model has been developed to assess attainability and sustainability of these objectives. The strategic intent includes five general areas. While the details of these strategies are detailed in other documents, these five strategies include:

• Economic Sustainability • Environmental Stewardship • Maintain the Unique Character of Jackson Hole • Governmental Consolidation • Town is Heart of Region

Cash management policies and practices. Cash temporarily idle during the year was invested in short-term government money market accounts, certificates of deposit, obligations of the U.S. Treasury, and government agencies. The maturities of the investments range from 180 days to 10 years. Investment income includes appreciation in the fair value of investments. Increases in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments that the government intends to hold to maturity. The town subscribes to the “pooled” cash concept of investing for all cash balances. All investment decisions are based on operating and capital needs in accordance with the town’s over-all fiscal plan. Risk Management. The town’s comprehensive risk management program includes commercial insurance coverage for property and liability. Workers’ compensation coverage is provided through a state agency. The town is a member of the Wyoming Association of Risk Management (WARM) and the Local Government Liability Pool (LGLP). WARM and LGLP provide property and liability coverage, respectively. Employee health coverage is self-insured and reinsurance coverage is purchased for large claims. Every year

the town bids it reinsurance coverage, which is subject to experience factors and risk assumption levels. Pension. All full-time employees of the town are covered by a statewide defined benefit pension plan administered by the Wyoming Retirement System. This plan is a cost-sharing, multiple-employer plan and the town contributes both the employee and employer share. Single Audit. As a recipient of federal awards, the town is also responsible for ensuring that adequate internal control is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control is subject to periodic evaluation by management and the internal audit staff of the town. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Jackson, Wyoming for its comprehensive financial report for the fiscal year ending June 30, 2007. This is the 23th year the town has received this prestigious award. In order to be awarded the Certificate of Achievement, the government must publish an easily readable and efficiently organized comprehensive annual financial report. This report satisfies both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement Program’s requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. The preparation of this report could not be accomplished without the professional, efficient services of the staff in the Administration and Finance Departments. We would like to express our appreciation to all members of both offices, with special recognition for the assistance contributed by Finance Manager Melanie Adams. Additionally, the professional guidance provided by Rick Palmer of Thompson, Palmer & Associates, PC, was instrumental in this report’s preparation. Due credit also should be given to the mayor and the council for their support in planning and conducting the operations of the town in a responsible and progressive manner. Robert W. McLaurin Wayne W. Oberg, MBA, CPA Town Manager Finance Director

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Certificate of Achievement TOWN OF JACKSON

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate for Excellence in Financial Reporting to the Town of Jackson, Wyoming for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2007. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement program requirements, and we are submitting it to the GFOA.

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Organization of Services Chart TOWN OF JACKSON

County Budgeted Joint Programs

TOWN OF JACKSON ORGANIZATION OF SERVICES CHARTCommunity Members and Visitors

of the Town of Jackson

MUNICIPAL JUDGE TOWN ATTORNEY

Town Boards and CommissionsPLANNING COMMISSION/ BOARD OF ADJUSTMENT

DESIGN REVIEW COMMITTEEBOARD OF EXAMINERS/BOARD OF APPEALS

Law Enforcement Dispatch

Fire/EMS Operations

Parks & Rec Operations

TOWN MANAGER

Administration

AdministrationPublic Affairs

Pathways CoordinationInformation Systems

Police

Community PolicingLaw EnforcementCommunity Service

OfficersCode ComplianceAnimal ShelterVictim Services

Personnel/ Town Clerk

Human ResourcesRecords Management

Council AssistanceTown Clerk Duties

Administrator AssistanceSpecial Events

TrainingLiquor Licensing

Public Works

Street MaintenanceWastewater Treatment

Water Wells/DistributionWaste Collection Lines

Fleet MaintenanceEngineering

Capital ProjectsCustodian

Meter Reading

Finance

AccountingFinancial ReportingBudget Development

DisbursementsUtility Billing

CollectionsCash Management

Debt AdministrationRisk Management

Transit

Visitor TransportIn-Town Shuttle

Commuter ServicesTransit Marketing

Planning

Development ReviewLong Range PlanningBuilding Inspection Building Permitting

LDR/Code ComplianceContractor Licensing

Sign Permitting

MAYOR AND COUNCIL

Joint Powers BoardsSTART BUS BOARD

PARKS & RECREATION BOARDAIRPORT BOARD

RECYCLING BOARDPATHWAYS TASK FORCE

EMERGENCY SERVICES COUNCILMUSEUM BOARD

ENERGY EFFICIENCY ADVISORY BOARD

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Directory of Officials TOWN OF JACKSON

MAYOR & TOWN COUNCIL

Position Name Term Expires Mayor ...................................................................................... Mark Barron 12/31/2008 Council .................................................................................Mark Obringer 12/31/2008 Council .................................................................................Abe Tabatabai 12/31/2008 Council .................................................................................Melissa Turley 12/31/2010 Council .................................................................................... Robert Lenz 12/31/2010

TOWN STAFF

Town Manager ............................................................Robert W. McLaurin Town Attorney............................................................Audrey Cohen-Davis Municipal Judge .......................................................................Tom Jordan Personnel Director & Town Clerk................... Roxanne DeVries Robinson Finance Director.............................................................. Wayne W. Oberg IT Director…………………………………………………….…Matt Weisman Police Chief .......................................................................... Dan Zivkovich Planning Director ................................................................... Tyler Sinclair Public Works Director ............................................................ Larry Pardee Transit Director................................................................Michael Wackerly

JOINT TOWN/COUNTY STAFF

Fire Chief..................................................................... H.L. “Rusty” Palmer Parks & Recreation Director…………………………….Steve Foster

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FINANCIAL SECTION

December 23, 2008

Thompson, Palmer & Associates, PC CERTIFIED PUBLIC ACCOUNTANTS 275 E Broadway PO BOX 4158 Tel: (307) 733-5160 JACKSON, WY 83001 Fax: (307) 733-1415

Independent Auditor’s Report

The Honorable Mayor and Members of the Town Council of Jackson, Wyoming: We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Jackson, Wyoming, as of and for the year ended June 30, 2008, which collectively comprise the Town’s basic financial statements as listed in the table of contents. We have also audited the financial statements of each of the Town’s non-major governmental funds presented in the accompanying combining fund financial statements as of and for the year ended June 30, 2008, as listed in the table of contents. These financial statements are the responsibility of the Town of Jackson’s management. Our responsibility is to express opinions on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of the other auditors provide a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Jackson, Wyoming as of June 30, 2008, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the general fund and major special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each non-major governmental fund of the Town of Jackson, Wyoming as of June 30, 2008 and the respective changes in financial position thereof and the budgetary comparison for the affordable housing, fee in lieu of parking, park exaction, employee housing and special revenue funds for the year then ended, in

conformity with accounting principles accepted in the United State of America. In accordance with Government Auditing Standards, we have also issued our report dated December 23, 2008, on our consideration of the Town of Jackson, Wyoming’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Management’s Discussion and Analysis is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit this information and express no opinion it. Our audit was performed for the purpose of forming an opinion on the basic financial statements of the Town of Jackson, Wyoming, taken as a whole. The accompanying schedule of expenditures of federal awards as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, is presented for purposes of additional analysis and are not a required part of the basic financial statements of the Town of Jackson, Wyoming. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.

Thompson, Palmer and Associates, PC

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MANAGEMENT’S DISCUSSION AND ANALYSIS

Management’s Discussion and Analysis TOWN OF JACKSON

Management’s Discussion and Analysis As management of the Town of Jackson (town), we offer readers of the town’s basic financial statements this narrative overview and analysis of the financial activities of the town for the fiscal year ended June 30, 2008. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-3 of this report. OVERVIEW OF THE BASIC FINANCIAL STATEMENTS The discussion and analysis are intended to serve as an introduction to the town’s basic financial statements. The town’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Town of Jackson’s finances, in a manner similar to a private-sector business.

The statement of net assets presents information on all of the town’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the town is improving or deteriorating. The statement of activities presents information showing how the town’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both of the government-wide financial statements distinguish function of the Town of Jackson that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the town include general government, public safety, public works, health and welfare, community development, transit, and recreation and culture. The business-type activities of the town include water and sewage utilities. The government-wide financial statements can be found on pages 19-21 of this report. Fund financial statements. The fund financial statements focus on current available resources and are organized and operated on the basis of funds, each which is defined as fiscal and accounting entity with a self-balancing set of accounts established for the purpose of carrying on specific or attaining certain objectives in accordance with special regulations, restriction or limitations. The town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the town can be divided into two categories: governmental funds, and proprietary funds. The town does not maintain any fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information

COMPONENTS OF THE ANNUAL FINANICAL REPORT

Management’s Discussion and

Analysis

Basic Financial

Statements

Required Supplementary

Information

Government-wide Financial

Statements

Fund

Financial Statements

Notes to the

Financial Statements

Summary Detail

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presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the town’s near term financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and change in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The town maintains four major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, two special revenue funds, and one capital projects fund, all of which are considered major funds. Data from 15 other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The town adopts an annual appropriated budget for its general and special revenue funds. A budgetary comparison statement has been provided for those funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 22-25 of this report. Proprietary funds. The Town of Jackson maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the governmental-wide financial statements. The town uses enterprise funds to account for its water and sewage operations. Internal service funds are accounting devices used to accumulate and allocate costs internally among the town’s various functions. The town uses internal service funds to account for its fleet management and employee insurance (self insurance) operations. Because both of these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water and sewage utilities. Both are considered major funds of the town. Conversely, both internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is

provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 29-33of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 34-48 of this report. Other information. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds can be found immediately following the footnotes. Combining and individual fund statements can be found on pages 49-66. FINANCIAL HIGHLIGHTS • The town’s net assets (asset minus liabilities) grew by 6% as a result of this

year’s operations. The net assets of the town’s governmental activities increased $6,193,470 (10%) and net assets of the town’s business-type activities decreased $86,436 (less than 1%).

• Capital assets increased $12,675,078 (28%), with most of the increase

comprised of additions to the town’s public parking stock. A new $12 million parking garage, financed with reserves—current and other assets, special purpose excise taxes, and state grants, was completed in 2008.

• The town’s long-term liabilities decreased $241,267 (28%) during the fiscal year ending June 30, 2008. Governmental long-term liabilities decreased $70,000 (6%). Business-type activities long-term liabilities decreased $171,267 (27%). The key factor behind this decrease is the redemption of a 7.25%, $142,744 note payable to Wyoming Water Development Commission.

• At the close of the current fiscal, the town’s governmental funds reported

total ending fund balances of $9,035,494, a decrease of $8,065,362 (47%). The key factor in this decrease is the use of reserves in the construction of the parking garage.

• The General Fund’s fund balance, reserved and unreserved, decreased

$1,747,281 (37%) to $2,977,983. The unreserved fund balance is 19% of expenditures and other uses and 23% with one-time transfers out (parking garage and employee housing “rights”) removed from the calculation.

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GOVERNMENT-WIDE FINANCIAL ANALYSIS NET ASSETS

2008 2007 2008 2007 2008 2007 Current and other assets 12,984,963$ 19,088,214$ 11,488,596$ 5,103,997$ 24,473,559$ 24,192,211$ Capital assets 57,706,493 45,031,416 27,775,241 27,131,448 85,481,734 72,162,864

Total assets 70,691,456 64,119,630 39,263,837 32,235,445 109,955,293 96,355,075

Other liabilities 2,455,886 2,007,529 586,846 300,751 3,042,732 2,308,280Long-term liabilities 1,085,000 1,155,000 458,576 629,843 1,543,576 1,784,843

Total Liabilities 3,540,886 3,162,529 1,045,422 930,594 4,586,308 4,093,123

Net assets:Invested in capital assets, net of related debt 56,621,493 43,876,416 27,316,665 26,501,605 83,938,158 70,378,021 Restricted 1,833,256 - - 1,833,256 Unrestricted 8,695,821 17,080,685 10,864,810 11,803,246 19,560,631 28,883,931

Total net assets 67,150,570$ 60,957,101$ 38,181,475$ 38,304,851$ 105,332,045$ 99,261,952$

TotalGovernment

GovernmentalActivities

Business-typeActivities

By the far the largest portion of the town’s net assets (80%) reflects investments in capital assets (e.g. land, buildings, structures, systems, machinery, equipment, infrastructure, and intangible assets), net of any related debt used to acquire those assets that is still outstanding. The town uses assets to provide services to citizens; consequently, these assets are not available for future spending. Although the town’s investment in capital assets is reported net of related debt, it should be noted that resources need to repay this debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities. A small portion of the town’s net assets (less than 2%) represents resources that are subject to external restrictions on how they can be used. The remaining unrestricted net assets $19,597,571 may be used to meet the

ongoing obligations to citizens and creditors. Of the unrestricted net assets, $10,901,750 (56%) is attributable to business-type activities. Unrestricted governmental activities net assets decreased $8,384,863 (49%), while business-type activities unrestricted net assets decreased $901,496 (8%). Government-wide total unrestricted net assets decreased $9,286,359 (32%). The increase in governmental activities restricted net assets is from special purpose excise tax collections. The $12,745,077 (28%) governmental activities capital assets increase is largely the result of the addition a public parking garage, primarily funded by draw downs in reserves.

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CHANGE IN NET ASSETS

2008 2007 2008 2007 2008 2007REVENUESProgram revenues: Charges for services 2,449,844$ 1,741,800$ 2,305,629$ 2,349,196$ 4,755,473$ 4,090,996$ Operating grants and contributions 2,072,332 3,273,890 2,072,332 3,273,890 Capital grants and contributions 2,170,728 2,536,860 516,335 510,578 2,687,063 3,047,438General revenues: Sales tax (1% local option) 4,921,587 4,673,695 4,921,587 4,673,695 Specific purpose excise taxes 1,843,785 660,694 1,843,785 660,694 Franchise taxes 449,906 456,751 449,906 456,751 Unrestricted grants and contributions 9,372,899 7,788,470 9,372,899 7,788,470 Unrestricted investment earnings 659,512 900,124 527,761 634,002 1,187,273 1,534,126 Gain on sale of capital assets 1,090,309 1,090,309 Other 135,648 137,308 135,648 137,308Total revenues 25,166,550 22,169,592 3,349,725 3,493,776 28,516,275 25,663,368

EXPENSESProgram activities: Governmental activities: General government 3,362,182 3,319,013 3,362,182 3,319,013 Public safety 5,510,599 5,556,415 5,510,599 5,556,415 Public works 4,399,793 3,167,186 4,399,793 3,167,186 Transit 3,102,306 2,618,091 3,102,306 2,618,091 Health and welfare 596,007 563,644 596,007 563,644 Community development 618,939 1,548,727 618,939 1,548,727 Recreation and culture 1,843,538 1,588,132 1,843,538 1,588,132 Interest on long-term debt 81,371 84,465 81,371 84,465 Business-type activities Water 1,226,527 1,486,522 1,226,527 1,486,522 Sewage 1,667,979 1,920,157 1,667,979 1,920,157Total expenses 19,514,735 18,445,673 2,894,506 3,406,679 22,409,241 21,852,352

Excess (deficiency) before transfers 5,651,815 3,723,919 455,219 87,097 6,107,034 3,811,016 Transfers in (out) 541,655 69,936 (541,655) (69,936)

Increase (decrease in net assets) 6,193,470 3,793,855 (86,436) 17,161 6,107,034 3,811,016 Net assets at the beginning of the year 60,957,100 57,163,245 38,304,851 38,287,690 99,261,951 95,450,935 Net assets at the end of the year 67,150,570$ 60,957,100$ 38,218,415$ 38,304,851$ 105,368,985$ 99,261,951$

Governmental Business-type TotalActivities Activities Government

12


Revenues by Source -Governmental Activities

Franchise taxes2%

Gain on capital asset sale

4%Unrestricted investment earnings

3%

Unrestricted grants &

contributions36%

Specific purpose excise tax

7%

Sales tax (1% local option)

20%

Other1%

Capital grants & contributions

9%

Operating grants & contributions

8%

Service charges10%

EXPENSES AND PROGRAM REVENUES - GOVERNMENTAL ACTIVITIES

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

Gen

eral

gove

rnm

ent

Publ

ic s

afet

y

Publ

ic w

orks

Tran

sit

Hea

lth a

ndw

elfa

re

Com

mun

ityde

velo

pmen

t

Rec

reat

ion

and

cultu

re

Inte

rest

on

debt

Mill

ions

Program expenditures Program revenues

Governmental Activities. The most significant revenues of the governmental activities are unrestrictive grants and contributions. Unrestrictive grants and contributions are 36% of total revenues, with most of this amount attributed to the shared state revenues, including the 4% state sales tax. The 1% local option sales tax is the second largest revenue source at 20%. Capital grants and contributions, 9% of revenues, include grants for transit and public works projects. The specific purpose excise tax, 7% of revenues, is restricted to voter approved capital projects. Public safety (police, fire/EMS, building inspector, victim services, animal shelter, and communications) expenses are the most significant (28%), followed by public works (23%), general government (17%), transit (16%), recreation and culture (9%), and community development and health and welfare are each at (3%). Interest on long-term debt is less than 1%. Included in these amounts is depreciation expense, which is 14% of the total expenses for governmental activities. Governmental revenues increased $2,996,958 (14%) in the current year, with the most significant portion of the growth attributable to specific purpose excise tax collections and to a gain on the sale of assets (church land exchange). The local option sales tax increased $247,892 (5%) and unrestricted operating grants and contributions, which includes the state-shared 4% sales tax and other intergovernmental revenues, increased $1,584,429 (20%). Unrestricted investment earnings declined $240,612 (27%) as result of lower investment balances and declining yields. Governmental activities expenses increased $1,069,062 (6%) in the current year. The most significant changes in program expenses were as follows: • Public Works expenses increased $1,232,960 (39%). The increase in

depreciation expenses and infrastructure repair costs were contributing factors.

• Community development expenses decreased $929,788 (60%). The

decrease is primarily attributable to a prior year pass-through grant and related expenditures.

• Transit expenses increased $484,215 (18%), which were driven by higher

fuel costs and increases in service capacity. • Recreation and culture expenses increased $255,406 (16%), primarily due

to the increase in costs of contract services provided by the county. There were not any other programs with significant or unusual changes.

13


REVENUES BY SOURCE - BUSINESS-TYPE ACTIVITIES

Service charges

69%

Capital grants &

contributions15%

Unrestricted investment earnings

16%

REVENUES AND EXPENSES - BUSINESS-TYPE ACTIVITIES

$0.0

$0.5

$1.0

$1.5

$2.0

Water Utility Sewage Utility

Mill

ions

Revenues Expenses

Business-type activities. Business-type activities decreased the town’s net assets by $86,436, which is $103,597 less than the prior fiscal year increase. Key elements of the change are as follows: Water utility sales and meter chargers were less than the prior year (2%) and utility costs in the sewage utility were 15% higher. Water and sewage rates did not increase over the prior year. Capital grants and contributions totaled $516,335 or 1% higher over the prior year. Capital grants and contributions include capacity and tap fees charged to new customers. Depreciation expenses in the water and sewer utilities for fiscal year 2008 were $382,474 and $538,874, respectively. FINANCIAL ANALYSIS OF THE TOWN’S FUNDS Governmental funds. The focus of the town’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the town’s financing requirements. In particular, unreserved fund balances may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At June 30, 2008, the town’s governmental funds reported total ending fund balances of $9,035,494, a decrease of $8,065,362 (47%) in comparison with the prior year. Nearly 100% of the total ending fund balances constituted unreserved fund balances ($9,021,908), which are considered available for appropriation. The remainder of the fund balances are reserved to indicate that it is not available for new spending because it has already been committed 1) to pay debt service ($5,895), or 2) to off-set non-current financial resources that are not anticipated to be liquidated in the near term ($7,691). The town has designated $8,356 of the unreserved fund balances for DEA, DARE, and vicitim services programs. At the end of the fiscal year, the General Fund reported a fund balance of $2,977,983, decreasing $1,747,281 from the previous year. General fund revenues were $1,338,446 (11%) more than in the prior fiscal year and expenditures increased by $773,316 (12%). Transfers out increased by $2,116,574 (268%). General taxes, including, the 1% local option sales tax and franchise fees, increased $59,571 (2%). Intergovernmental revenue increased $958,687 (12%) and licenses and permits increased $231,439 (35%).

14


General government expenditures increased $267,498 (10%), with IT and comprehensive plan expenditures the major factors. Public safety expenditures increased $787,231 (18%) and recreation and culture expenditures increased $225,489 (18%), both reflecting the sharp increases in costs related to joint programs (town and county). Public works costs increased $177,628 (13%) as a result of more street maintenance related costs. Community development costs increased $158,942, with a conference hosted by the town the main factor. The START Bus System Fund revenues were down slightly from the prior year with increases in fare revenue offsetting a decline in intergovernmental revenue. The fund balance decreased $61,890 (12%) to $464,553. The Affordable Housing Fund purchased six “rights of first offer” for $1.8 million. These “rights” allow town employees meeting certain income requirements to purchase lower-than-market housing. The “rights” are revolving, which means the town will for the next 99 years have up to six employees living in qualifying homes. When an employee with a “right” leaves employment another employee becomes eligible for that “right”. The purchase was financed with $600,000 from the General Fund and $1.2 million loan from the Sewage Fund. The 5th Cent Capital Project Fund saw its fund balance decrease $3,982,862 (69%) as result of the construction of $12 million parking garage. General Fund and Vehicle Replacement Fund contributions to the garage were $1.4 million and $1 million, respectively. Proprietary funds. The proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The water utility’s net assets increased $37,271 (less than 1%) from the prior fiscal year. Operating loss increased $39,580 to $47,975. Operating expenses increased $16,735 (1%) to $1,213,946. Investment earnings declined $50,772 (18%) to $233,827 as result of lower investment yields and balances. The Water Fund also redeemed $142,744 in notes payable carrying an interest rate of 7.25% during the fiscal year. Other factors of the changes in income from operations have previously been discussed in the government-wide financial analysis of business-type activities. The sewage utility’s net assets decreased $160,647 (1%) in the fiscal year ending June 30, 2008. Sewage utility revenues increased $14,927 (1%) to $1,139,658 and utility expenses increased $30,950 (2%) to $1,692,380. Capital contributions decreased $37,033 (9%) to $393,724.

GENERAL FUND BUDGETARY HIGHLIGHTS The differences between the 2008 original budget and the final amended budget are adopted by council resolution throughout the year. Total General Fund revenues totaled $13,220,474 and trailed budget by $199,816 (1%). General taxes and intergovernmental revenues were $77,306 (3%) and $176,941 (2%) less than budget, respectively. Both were impacted by the late decline in local and state sales taxes. License and permits exceeded budget by $63,474 (8%) due impart to higher collections from developers. Total General Fund expenditures totaled $12,579,073 and were $517,294 (4%) less than budget. Supplemental appropriations from budget amending council actions increased the original budget by $369,892. The General Fund year end fund balances since 1999 are as follows:

FundYear Balance1999 3,848,406$ 2000 4,333,044 2001 3,517,643 2002 3,651,372 2003 3,348,074 2004 3,251,473 2005 3,323,223 2006 3,680,611 2007 4,725,264 2008 2,977,983

15


CAPITAL ASSETS AND DEBT ADMINISTRATION CAPITAL ASSETS

(net of accumulated depreciation)

2008 2007 2008 2007 2008 2007

Land 11,096,018$ 8,902,997$ 1,090,000$ 1,090,000$ 12,186,018$ 9,992,997$ Construction in progress 883,803 3,329,109 1,317,243 1,178,768 2,201,046 4,507,877Building, structures, & improvements 20,420,267 9,545,741 24,570,786 24,030,920 44,991,053 33,576,661Machinery and equipment 4,836,672 5,076,146 797,212 831,761 5,633,884 5,907,907Intangible assets 1,793,823 1,793,823Infrastructure 18,675,910 18,177,422 18,675,910 18,177,422 Total 57,706,493$ 45,031,415$ 27,775,241$ 27,131,449$ 85,481,734$ 72,162,864$

ActivitiesBusiness-type Total

GovernmentActivitiesGovernmental

Capital assets. The town’s investment in capital assets for its governmental and business-type activities at June 30, 2008 totaled $85,481,734 (net of accumulated depreciation). This investment in capital assets included land, construction in progress, structures, systems, machinery and equipment, tangible assets, and infrastructure. The total increase in the town’s investment in capital assets resulted primarily from the completion of a $12 million parking garage and the purchase of $1.8 million in “first rights of offer” for affordable employee housing.

The total increase over the prior fiscal year is approximately 18%, of which governmental activities increased 28% and business-type activities increased 2%. Additional information on the town’s capital assets can be found in the notes to the financial statements on page 43.

LONG-TERM LIABILITIES

2008 2007 2008 2007 2008 2007

Revenue bonds 1,085,000$ 1,155,000$ 1,085,000$ 1,155,000$ Notes payable - WWDC 458,576$ 629,843$ 458,576 629,843 Total 1,085,000$ 1,155,000$ 458,576$ 629,843$ 1,543,576$ 1,784,843$

Activities Activities GovernmentGovernmental Business-type Total

Long-term liabilities. The town’s outstanding long-term liabilities, including revenue bonds and notes payable totaled $1,543,576 at June 30, 2008. Of this total, $1,085,000 (70%) is in governmental activities and $458,576 (30%)

is in business-type activities. The town’s outstanding long-term liabilities increased $241,267 (14%) in 2008.

16


Additional information on the town’s long-term liabilities can be found in the notes to the financial statements on pages 43-44 of this report. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES • The unemployment rate for the Teton County, Wyoming area for June 30,

2008 was 1.9%, which is below the state average (3.2%) and below the national average (5.5%).

• The state and local economy has improved and sales tax collections are up, which may translate into more revenue sharing. Current state funding levels do not appear to be threatened because of the strong demand for coal, gas and oil.

• The occupancy rate of the town’s central business district has remained constant over the last three years and new commercial construction continues to be strong.

• Inflationary trends in the region compare favorably to national indices and the rise in housing prices has abated.

• The town expects residential and commercial growth to continue, accompanied by the increase in affordable housing.

REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the town’s finances for all those interested in governmental finance. Questions concerning any information in the report or requests for additional information should be addressed to Town of Jackson, Finance Department, P.O. Box 1687, Jackson, WY 83001.

17


18

BASIC FINANCIAL STATEMENTS

TOWN OF JACKSON

Statement of Net AssetsJune 30, 2008

Governmental Business-typeActivities Activities Total

ASSETSCash and cash equivalents 2,562,278$ 2,064,644$ 4,626,922$ Investments 10,203,504 8,213,154 18,416,658Accrued interest receivable 216,631 216,631Accounts receivable, net 79,852 194,678 274,530Internal balances (net) (946,600) 946,600 - Due from other government units 610,971 610,971Prepaid Items 7,691 7,691Inventories 250,636 69,520 320,156Capital assets: Nondepreciable 11,979,821 2,407,243 14,387,064 Depreciable, net 45,726,672 25,367,998 71,094,670

TOTAL ASSETS 70,691,456 39,263,837 109,955,293

LIABILITIESAccounts payable 1,852,627 533,340 2,385,967Accrued wages payable 356,921 42,852 399,773Due to other government units 176,300 176,300Accrued interest payable 19,724 10,654 30,378Unearned revenue 50,314 50,314Noncurrent liabilities: Due within one year 70,000 22,902 92,902 Due in more than one year 1,015,000 435,674 1,450,674

TOTAL LIABILITIES 3,540,886 1,045,422 4,586,308

NET ASSETSInvested in capital assets, net of related debt 56,621,493 27,316,665 83,938,158Restricted for: Debt service 5,895 5,895 Capital projects 1,827,361 1,827,361Unrestricted 8,695,821 10,901,750 19,597,571

TOTAL NET ASSETS 67,150,570$ 38,218,415$ 105,368,985$

The notes to the financial statements are an integral part of this statement.

Primary Government

19


20

TOWN OF JACKSON

Statement of ActivitiesYear Ended June 30, 2008

Operating CapitalCharges for Grants and Grants and Governmental Business-type

Functions/Programs Expenses Services Contributions Contributions Activities Activities TotalGovernmental activities:

General government 3,362,182$ 644,564$ (2,717,618)$ (2,717,618)$ Public safety 5,510,599 555,174 104,731$ 89,824$ (4,760,870) (4,760,870)Public works 4,399,793 17,050 170,252 1,273,716 (2,938,775) (2,938,775)Transit 3,102,306 676,350 1,756,995 441,920 (227,041) (227,041)Health and welfare 596,007 (596,007) (596,007)Community development 618,939 180,237 40,354 (398,348) (398,348)Recreation and culture 1,843,538 376,469 365,268 (1,101,801) (1,101,801)Interest on long-term debt 81,371 (81,371) (81,371)

Total governmental activities 19,514,735 2,449,844 2,072,332 2,170,728 (12,821,831) (12,821,831)

Business-type activitiesWater Utility 1,226,527 1,165,971 122,611 62,055 62,055Sewage Utility 1,667,979 1,139,658 393,724 (134,597) (134,597)

Total business-type activities 2,894,506 2,305,629 516,335 (72,542) (72,542)Total primary government 22,409,241$ 4,755,473$ 2,072,332$ 2,687,063$ (12,821,831) (72,542) (12,894,373)

General Revenues: Sales tax (1% local option) 4,921,587 4,921,587 Specific purpose excise tax 1,843,785 1,843,785 Franchise taxes 449,906 449,906 Unrestricted grants and contributions (revenue sharing) 9,372,899 9,372,899 Unrestricted investment earnings 659,512 527,761 1,187,273 Other 135,648 135,648 Gain on sale of capital assets 1,090,309 1,090,309Transfers 541,655 (541,655) Total general revenues 19,015,301 (13,894) 19,001,407 Change in Net Assets 6,193,470 (86,436) 6,107,034Net Assets - January 1 60,957,100 38,304,851 99,261,951Net Assets - December 31 67,150,570$ 38,218,415$ 105,368,985$

Net (Expense) Revenue and Changes in Net AssetsProgram Revenues


Primary Government

21

TOWN OF JACKSON

Balance SheetGovernmental FundsJune 30, 2008

5th Cent Other Total START Affordable Capital Governmental Governmental

General Bus System Housing Projects Funds FundsASSETS

Cash and cash equivalents 719,829$ 80,444$ 100,914$ 516,151$ 918,370$ 2,335,708$ Investments 2,915,643 325,834 408,749 2,090,651 3,399,494 9,140,371Interest receivable 215,456 1,175 216,631Accounts receivable 14,637 14,637Due from other government units 76,490 203,919 330,562 610,971Prepaid Items 7,691 7,691

TOTAL ASSETS 3,949,746$ 610,197$ 509,663$ 2,937,364$ 4,319,039$ 12,326,009$

LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 501,052$ 84,291$ 1,176,919$ 18,275$ 1,780,537$ Accrued wages payable 275,411 61,353 336,764 Interfund payable 946,600$ 946,600 Due to other government units 176,300 176,300 Unearned revenue 19,000 31,314 50,314 Total liabilities 971,763 145,644 946,600 1,176,919 49,589 3,290,515

Fund balance: Reserved for Prepaid Items 7,691 7,691 Reserved for debt service 5,895 5,895 Unreserved, designated 8,356 8,356 Unreserved, undesignated reported in: General fund 2,961,936 2,961,936 Special revenue funds 464,553 (436,937) 807,703 835,319 Capital projects funds 1,760,445 3,455,852 5,216,297 Total fund balance 2,977,983 464,553 (436,937) 1,760,445 4,269,450 9,035,494

TOTAL LIABILITIES AND FUND BALANCE 3,949,746$ 610,197$ 509,663$ 2,937,364$ 4,319,039$ 12,326,009$


22

TOWN OF JACKSON

Reconciliation of the Governmental Funds Balance Sheetto the Statement of Net AssetsJune 30, 2008

Total fund balances - governmental funds 9,035,494$

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Land 11,096,018$ Construction in progress 883,803Buildings, structures and improvements 27,949,875Machinery and equipment 10,790,349 Intangible 1,800,000Infrastructure 31,929,042Accumulated depreciation (26,742,594) 57,706,493

Internal service funds are used by management to charge the costs of central equipment and compensated absences to individual funds. These assets and liabilities of the internal service fund are included in governmental activities in the statement of net assets:

Cash and cash equivalents 226,570$ Investments 1,063,133Accounts receivable 65,215Inventories 250,636Accounts payable (72,090)Accrued wages payable (20,157) 1,513,307

Long-term liabilties of governmental funds, including bonds, certificates of participation, equipment certificates of indebtedness, notes and loans payable, and accrued interest payable, are not due in the current period and therefore are not reported in the funds.

Long-term liabilities (1,085,000)$ Accrued interest payable (19,724) (1,104,724)

NET ASSETS OF GOVERNMENTAL ACTIVITIES 67,150,570$


23

TOWN OF JACKSON

Statement of Revenues, Expenditures and Changes in Fund BalanceGovernmental FundsYear Ended June 30, 2008

5th Cent Other Total START Affordable Captial Governmental Governmental

General Bus System Housing Projects Funds FundsRevenues: General taxes 2,731,124$ 2,640,369$ 1,843,785$ 7,215,278$ Licenses and permits 890,474 177,870$ 246,703 1,315,047 Intergovernmental 9,025,769 2,131,600$ 2,025,119 13,182,488 Charges for services 24,792 676,350 701,142 Fines and forfeitures 208,049 208,049 Investment earnings 209,830 12,110 11,532 130,321 248,347 612,140 Other revenues 130,436 67,315 224,106 311,508 733,365 Total revenues 13,220,474 2,887,375 189,402 5,019,915 2,650,343 23,967,509 Expenditures: Current: General government 2,862,097 108,332 2,970,429 Public safety 5,286,309 28,342 5,314,651 Public works 1,592,788 1,592,788 Transit 2,662,753 2,662,753 Health and welfare 583,890 583,890 Community development 567,169 40,000 607,169 Recreation and culture 1,448,723 1,448,723 Other expenditures 256,097 256,097 Capital outlay 608,342 1,800,000 13,028,223 176,757 15,613,322 Debt service: Principal retirement 70,000 70,000 Interest and fiscal agent charges 81,818 81,818 Total expenditures 12,597,073 3,271,095 1,840,000 13,028,223 465,249 31,201,640 Excess (deficiency) of revenues over expenditures 623,401 (383,720) (1,650,598) (8,008,308) 2,185,094 (7,234,131)

Other financing sources (uses): Transfers in 535,213 350,000 865,000 4,469,156 496,230 6,715,599 Transfers out (2,905,895) (28,170) (11,600) (443,710) (4,157,455) (7,546,830) Total other financing sources (uses) (2,370,682) 321,830 853,400 4,025,446 (3,661,225) (831,231) Excess (deficiency) of revenues over expenditures and other sources (uses) (1,747,281) (61,890) (797,198) (3,982,862) (1,476,131) (8,065,362) Fund balance at beginning of year 4,725,264 526,443 360,261 5,743,307 5,745,581 17,100,856Fund balance at end of year 2,977,983$ 464,553$ (436,937)$ 1,760,445$ 4,269,450$ 9,035,494$


24

TOWN OF JACKSON

Reconciliation of the Statement of Revenues, Expenditures and Changesin Fund Balances of Governmental Funds to the Statement of ActivitiesYear Ended June 30, 2008

Net change in fund balances--total governmental funds (8,065,362)$

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds reported capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital outlays 14,372,610$ Depreciation (2,790,230) 11,582,380

Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. 70,000

The net effect of other miscellaneous transactions involving capital assets (i.e., sales, trade-ins, disposals, donations) increasing net assets. 1,092,698

Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service funds is reported with governmental activities. 1,513,307

Changes in long-term debt interest payableAccrued Interest Payable - June 30, 2007 20,171Accrued Interest Payable - June 30, 2008 19,724 447

Change in net assets of governmental activities 6,193,470$


25

TOWN OF JACKSON

Statement of Revenues, Expenditures and Changes in Fund BalanceBudget and Actual - General FundYear Ended June 30, 2008

Variance with

Orginal Final Actual Final BudgetRevenues: General taxes 2,808,430$ 2,808,430$ 2,731,124$ (77,306)$ Licenses and permits 739,000 827,000 890,474 63,474 Intergovernmental 9,330,770 9,202,710 9,025,769 (176,941) Charges for services 23,250 23,250 24,792 1,542 Fines and forfeitures 207,000 237,000 208,049 (28,951) Investment earnings 175,000 175,000 209,830 34,830 Other revenues 67,500 146,900 130,436 (16,464) Total revenues 13,350,950 13,420,290 13,220,474 (199,816) Expenditures: Current: General government 2,890,506 3,003,933 2,862,097 (141,836) Public safety 5,204,478 5,348,170 5,286,309 (61,861) Public works 1,813,890 1,828,304 1,592,788 (235,516) Health and welfare 604,460 604,460 583,890 (20,570) Community development 510,190 533,490 567,169 33,679 Recreation and culture 1,484,521 1,509,660 1,448,723 (60,937) Other expenditures 236,430 286,350 256,097 (30,253) Total expenditures 12,744,475 13,114,367 12,597,073 (517,294) Excess (deficiency) of revenues over expenditures 606,475 305,923 623,401 317,478

Other financing sources (uses) Transfers in 640,290 640,290 535,213 (105,077) Transfers out (1,987,895) (2,962,895) (2,905,895) 57,000 Total other financing sources (uses) (1,347,605) (2,322,605) (2,370,682) (48,077) Excess (deficiency) of revenues over expenditures and other sources (uses) (741,130) (2,016,682) (1,747,281) 269,401 Fund balance at beginning of year 4,725,264 4,725,264 4,725,264Fund balance at end of year 3,984,134$ 2,708,582$ 2,977,983$ 269,401$

Budgeted Amounts


26

TOWN OF JACKSON

Statement of Revenues, Expenditures and Changes in Fund BalanceBudget and Actual - START Bus System FundYear Ended June 30, 2008

Variance with Orginal Final Actual Final Budget

Revenues: Intergovernmental 3,768,900$ 3,796,900$ 2,131,600$ (1,665,300)$ Charges for services 633,000 633,000 676,350 43,350 Investment earnings 20,000 20,000 12,110 (7,890) Other revenues 9,000 16,000 67,315 51,315 Total revenues 4,430,900 4,465,900 2,887,375 (1,578,525) Expenditures: Current: Transit 2,590,040 2,615,770 2,662,753 46,983Capital outlay 2,401,000 2,436,000 608,342 (1,827,658) Total expenditures 4,991,040 5,051,770 3,271,095 (1,780,675) Excess (deficiency) of revenues over expenditures (560,140) (585,870) (383,720) 202,150

Other financing sources (uses) Proceeds from sale of assets Transfers in 350,000 350,000 350,000 Transfers out (28,170) (28,170) (28,170) Total other financing sources (uses) 321,830 321,830 321,830 Excess (deficiency) of revenues over expenditures and other sources (uses) (238,310) (264,040) (61,890) 202,150 Fund balance at beginning of year 526,443 526,443 526,443Fund balance at end of year 288,133$ 262,403$ 464,553$ 202,150$

Budgeted Amounts


27

TOWN OF JACKSON

Statement of Revenues, Expenditures and Changes in Fund BalanceBudget and Actual - Affordable Housing FundYear Ended June 30, 2008

Variance with Orginal Final Actual Final Budget

Revenues: Licenses and permits 146,000$ 146,000$ 177,870$ 31,870$ Investment earnings 15,600 15,600 11,532 (4,068) Total revenues 161,600 161,600 189,402 27,802 Expenditures: Current: Community development 40,000 40,000 40,000 Capital outlay 1,800,000 1,800,000 Total expenditures 40,000 1,840,000 1,840,000 Excess (deficiency) of revenues over expenditures 121,600 (1,678,400) (1,650,598) 27,802

Other financing sources (uses) Proceeds from sale of assets Transfers in 865,000 865,000 Transfers out (11,600) (11,600) Total other financing sources (uses) 865,000 853,400 (11,600) Excess (deficiency) of revenues over expenditures and other sources (uses) 121,600 (813,400) (797,198) 16,202 Fund balance at beginning of year 360,261 360,261 360,261Fund balance at end of year 481,861$ (453,139)$ (436,937)$ 16,202$

Budgeted Amounts


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TOWN OF JACKSON

Statement of Net AssetsProprietary FundsJune 30, 2008

GovernmentalActivities -

InternalWater Sewage Totals Service Funds

ASSETSCurrent assets: Cash and cash equivalents 945,681$ 1,082,023$ 2,027,704$ 263,510$ Investments 3,830,448 4,382,706 8,213,154 1,063,133 Account receivable 97,404 97,274 194,678 65,215 Interfund receivable 226,487 226,487 Inventories 34,760 34,760 69,520 250,636 Total current assets 4,908,293 5,823,250 10,731,543 1,642,494 Noncurrent assets: Interfund receivable - net current portion 720,113 720,113 Capital assets: Land 118,000 972,000 1,090,000 Buildings and systems 12,055,484 25,309,081 37,364,565 Machinery and equipment 1,167,558 1,047,497 2,215,055 Construction in progress 754,724 562,519 1,317,243 Total capital assets 14,095,766 27,891,097 41,986,863 Less accumulated depreciation (4,981,969) (9,229,653) (14,211,622) Total capital assets (net) 9,113,797 18,661,444 27,775,241 Total noncurrent assets 9,113,797 19,381,557 28,495,354TOTAL ASSETS 14,022,090 25,204,807 39,226,897 1,642,494

(continued)

Business-Type Activities – Enterprise Funds

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TOWN OF JACKSON

Statement of Net AssetsProprietary FundsJune 30, 2008 (continued)



LIABILITIESCurrent liabilities: Accounts payable 339,068$ 194,272$ 533,340$ 72,090$ Accrued wages payable 18,086 24,766 42,852 20,157 Accrued note interest payable 10,654 10,654 Notes payable - current 22,902 22,902 Total current liabilities 390,710 219,038 609,748 92,247 Noncurrent liabilities: Notes payable - net current portion 435,674 435,674 Total noncurrent liabilities 435,674 435,674TOTAL LIABILITIES 826,384 219,038 1,045,422 92,247

NET ASSETSInvested in capital assets, net of related debt 8,655,221 18,661,444 27,316,665Unrestricted 4,540,485 6,324,325 10,864,810 1,550,247TOTAL NET ASSETS 13,195,706$ 24,985,769$ 38,181,475 1,550,247$

Adjustment to reflect the consolidation of internal service fund related to enterprise funds 36,940 Change in net assets of business-type activities 38,218,415$



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TOWN OF JACKSON

Statement of Revenues, Expenses, and Changes in Fund Net AssetsProprietary FundsYear Ended June 30, 2008



Operating revenues: Water charges 1,163,061$ 1,163,061$ Sewer charges 1,139,618$ 1,139,618 Other 2,910 40 2,950 2,972,795$ Total operating revenues 1,165,971 1,139,658 2,305,629 2,972,795 Operating expenses: Operations and maintenance 706,416 1,028,450 1,734,866 2,842,806 Administration 125,056 125,056 250,112 Depreciation 382,474 538,874 921,348 Total operating expenses 1,213,946 1,692,380 2,906,326 2,842,806

Operating income (loss) (47,975) (552,722) (600,697) 129,989

Nonoperating revenues (expenses) Interest income 233,827 293,934 527,761 47,372 Interest expense (25,120) (25,120) Total Nonoperating revenes (expenses) 208,707 293,934 502,641 47,372 Income (loss) before transfers and contributions 160,732 (258,788) (98,056) 177,361

Capital contributions 122,611 393,724 516,335Transfers in 34,821 12,850 47,671 1,397,413Transfers out (280,893) (308,433) (589,326) (24,527)

Change in net assets 37,271 (160,647) (123,376) 1,550,247

Fund net assets at beginning of year 13,158,435 25,146,416Fund net assets at end of year 13,195,706$ 24,985,769$ 1,550,247$

Adjustment to reflect the consolidation of internal service fund related to enterprise funds 36,940 Change in net assets of business-type activities (86,436)$



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TOWN OF JACKSON

Statement of Cash FlowsProprietary FundsYear Ended June 30, 2008


Internal Water Sewage Totals Service Funds

Cash flows from operating activities: Cash received from customers and users 1,196,854$ 1,142,879$ 2,339,733$ 2,963,276$

Cash paid to suppliers for goods and services (333,422) (714,633) (1,048,055) (2,360,963)Cash paid to employees (472,896) (588,842) (1,061,738) (507,802)Other operating revenues (expenses) 2,910 40 2,950

Net cash provided (used) by operating activities 393,446 (160,556) 232,890 94,511

Cash flows from noncapital financing activities:Transfers from other funds 34,821 12,850 47,671 1,209,287Transfers to other funds (280,893) (308,433) (589,326) (24,527)Interfund loan (1,200,000) (1,200,000)Interfund loan repayments 253,400 253,400

Net cash provided (used) by noncapital financing activities (246,072) (1,242,183) (1,488,255) 1,184,760

Cash flows from capital and related financing activities:Capital contributions 122,611 393,724 516,335Acquisition of capital assets (755,312) (439,669) (1,194,981)Principal payments on long-term debt (171,267) (171,267)Interest and fiscal charges on bonds (31,916) (31,916)

Net cash (used) by capital and related financing activities (835,884) (45,945) (881,829)

Cash flows from investing activities:Interest received on investments 286,647 364,694 651,341 44,748Proceeds from sales and maturities of investments 5,781,017 6,614,497 12,395,514Purchase of investments (5,483,048) (5,776,699) (11,259,747) (1,060,509)

Net cash provided (used) by investing activities 584,616 1,202,492 1,787,108 (1,015,761)

Net increase (decrease) in cash and cash equivalents (103,894) (246,192) (350,086) 263,510

Cash and cash equivalents - January 1 1,049,575 1,328,215 2,377,790

Cash and cash equivalents - December 31 945,681$ 1,082,023$ 2,027,704$ 263,510$


(continued)

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TOWN OF JACKSON

Statement of Cash FlowsProprietary FundsYear Ended June 30, 2008 (continued)



Reconciliation of operating income to net cashprovided (used) by operating activities:

Operating income (loss) (47,975)$ (552,722)$ (600,697)$ 129,989$ Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 382,474 538,874 921,348Changes in assets and liabilities: Accounts receivable 33,793 3,261 37,054 (28,958) Due from other government units (9,519) Materials and supplies (12,787) (34,760) (47,547) (30,521) Accounts payable 35,908 (115,585) (79,677) 32,814 Accrued wages payable 2,033 376 2,409 706

Net cash provided (used) by operating activities 393,446 (160,556) 232,890 94,511

Schedule of noncash investing, capital and financing activities:

Increase (Decrease) in fair value of investments 9,453$ 10,815$ 20,268$ 10,815$ Book value of disposed assets - 8,045 8,045


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Notes to the Financial Statements June 30, 2008 TOWN OF JACKSON

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the Town of Jackson, Wyoming (the town) have been prepared in conformity with accounting principles (GAAP) generally accepted in the United States of America as applied to governmental units, as applied by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. A. Reporting entity The Town of Jackson was incorporated 1914 and is under Wyoming Statutes with a mayor-council form of government. The five-member mayor-council is elected on staggered, even-numbered years. Councilors are elected at-large to four-year terms while the mayor is elected to a two-year term. In accordance with GASB Statement No. 14, The Reporting Entity, the financial statements present the town and its component units. The town includes all funds, organizations, institutions, agencies, departments, and offices that are not legally separate from it. Component units are legally separate organizations for which the elected officials of the town are financially accountable and are included within the basic statements because of the significance of their operational or financial relationships to the town. The town is considered financially accountable for a component unit if it appoints a voting majority of the organization’s governing body and the town is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of services performed or provided by the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific burdens on, the town. The mayor and council are responsible for appointing some members of other organizations. However, the town’s accountability for these organizations does not extend beyond making appointments. The boards of the Jackson Hole Airport and the Volunteer Fire Department are appointed jointly by the town and other entities. The town provides minimal financial support to each of these organizations and is not liable for claims on either. As a result of applying the component unit definition criteria above, no organization has been defined in accordance with GASB Statement No. 14 to require discrete presentation in this financial report.

B. Government-wide and fund financial statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the non-fiduciary activities of the primary government and its component unit. For the most part, the effect of inter-fund activity has been removed form these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from the legally separate component unit for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operation or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Fiduciary funds are excluded from government-wide financial statements. The town does not have any fiduciary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement focus, basis of accounting, and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collectible

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with the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the town considers revenue to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and judgments, are recorded when payment is due. Agency funds statements use neither the economic resources nor the current financial resources measurement focuses. Sales taxes, property taxes (currently not levied), franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the town. Since governmental fund statements are presented using a measurement focus and basis of accounting different from that used in the government-wide statements’ governmental column, a reconciliation is presented that briefly explains the adjustments necessary to reconcile ending net assets and the change in net assets. In the fund financial statements, financial transactions and accounts of the town are organized on the basis of funds. The operation of each fund is considered to be an independent fiscal and separate accounting entity, with a self-balancing set of accounts recording cash and/or other financial resources together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restriction, or limitations. When both restricted and unrestricted resources are available for use, it is the town’s policy to use restricted resources first, then unrestricted resources as needed. Major Governmental Funds – The major governmental funds reported by the town are as follows:

General Fund. The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

START Bus System Fund. This special revenue fund accounts for current and capital bus system expenditures, primarily financed by state and federal grants.

Affordable Housing Fund. This special revenue fund accounts for housing development exactions used for the purpose of creating additional affordable housing for workers employed within the community. 5th Cent Capital Projects Fund. This capital projects fund is used to account for procurement of capital equipment and capital improvements not accounted for in other capital projects funds or utility funds.

Major Proprietary Funds – The town reports the following major proprietary funds:

Water Fund. This enterprise fund accounts for the operations of the town-owned water treatment and distribution system. Sewage Fund. This enterprise fund accounts for the operations of the town-owned sewage collection and treatment system.

Additionally, the town reports the following fund type:

Internal Service Funds. The operations of the Employee Insurance Fund and the Fleet Management Fund are reported in internal service funds because they provide services to other departments of the town on a cost reimbursement basis.

Private-sector standards of accounting and financial reporting issued prior to June 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standard Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to the same limitations. The town has elected not to follow subsequent private-sector guidance. As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the town’s enterprise funds and various other functions of the town. Elimination of these charges would distort the direct costs and program revenues of the various functions concerned.

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Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes the town has the authority to impose. Proprietary funds distinguish operating revenues and expense from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the town’s enterprise funds are charges to customers for sales and services. Operating expenses include cost of sales and services, administrative expenses, depreciation, and taxes and tax equivalents. All revenue and expenses not meeting this definition are reported as non-operating revenues and expenses. Transfers to the General Fund reflect cost recovery of indirect services provided by general government and public works functions. D. Assets, liabilities, and net assets or equity 1. Cash (including cash equivalents) and investments Cash and investment balances from all funds are combined and invested to the extent authorized by state statutes and town investment policy. Earnings from such investments are allocated to respective funds on the basis of applicable cash balance participation by each fund. The interest receivable balance is reported as one number in the General Fund while all other funds receive interest revenue distributions in cash. Investments for the town are reported at fair value. The town’s cash and cash equivalents are considered to be cash on hand, demand deposits, and investments with original maturities of three months or less. 2. Receivables Account (trade) receivables are carried at original billing amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a regular basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. With approval council, trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received.

A receivable is considered past due if any portion of the receivable balance is outstanding for more than 30 days. Interest is charged on receivables that are outstanding for more than 30 days. Accrual of interest is not suspended until a receivable is determined to be uncollectible. Provisions for bad debts would be insignificant and immaterial and none has been made for 2008. Interest receivable is recorded as revenue in the year the interest is earned and is available to pay liabilities of the current period. The interest receivable balance is reported as one number in the General Fund while all other funds receive interest revenue distributions in cash. 3. Short-term interfund receivables/payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet. Short-term inter-fund loans are classified as "inter-fund receivables/ payables". Interfund receivables/payables are closed to cash and cash equivalents at year end. 4. Materials & supplies inventories Materials and supplies are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. The consumption method is used to account for inventories. Inventory costs are recorded as expenditures when individual inventory items are consumed. In governmental funds, reported inventories are equally offset by a fund balance reserve which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. The net change in reserved fund balances is not presented because the combined statements of revenues, expenditures, and changes in fund balances reflects the changes in total fund balances rather than just the unreserved fund balances. 5. Prepaid items Payments made to vendors for services that will benefit periods beyond June 30, 2008, are recorded as prepaid items. In governmental funds, reported prepaid items are equally offset by a fund balance reserve which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. The net change in reserved fund balances is not presented because the combined statements of revenues, expenditures, and changes in fund balances reflects the changes in total fund balances rather than just the unreserved fund balances.

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6. Capital assets (property, plant and equipment) Capital assets, including property, plant, and equipment, and infrastructure assets (e.g., roads, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 ($100,000 infrastructure) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value on date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or material extend assets lives are not capitalized. Major outlays for capital assets and improvements are as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed, net of interest earned on the invested debt proceeds over the same period. Property, plant, equipment, and intangible assets with exhaustible useful lives are capitalized when acquired, and depreciation is provided using the straight-line method applied over the following estimated useful lives of the assets:

Buildings 10-50 Distribution systems 20-50 Infrastructure 20-50 Machinery and equipment 5-15 Other improvements 5-99 Intangible assets 5-99

Intangible assets lack physical substance, are nonfinancial in nature, and have an estimated useful life extending beyond a single reporting period. The term depreciation, as used in this footnote, includes amortization of intangible assets. Capital assets transferred between funds are transferred at their net book value (cost less accumulated depreciation), as of the date of the transfer. 7. Compensated absences Employees can sell-back up to 40 hours of accumulated paid time off (PTO) before the end of each fiscal year, provide they meet certain requirements. All

other accumulated PTO is forfeited. There are no accumulated balances at year end. 8. Long-term obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statements of net assets. If any, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from actual debt proceeds received, are reported as debt service expenditures. The town’s current debt obligations were issued without discounts or premiums and issuance costs were insignificant and immaterial. 9. Fund equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 10. Comparative data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the government's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand.

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11. Sales taxes The town imposes a 1% local options sales and use tax (5th Cent). The 5th cent sales tax is collected by the state and remitted monthly to the town. Sales tax revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. 12. Entitlements, share revenues and grants (Intergovernmental revenues) Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized in the fund financial statements as revenue when the qualifying expenditures have been incurred, all eligibility requirements have been met, and reimbursement is received with availability period. Included below are the ongoing shared revenues and grants received by the town. Sales tax. The state levies a 4% general sales and use tax, with 39% of it returned to Wyoming towns and counties based on populations. Gasoline, cigarette, and severance taxes These three taxes are all imposed by the state and returned to cities, towns and counties by various percentages determined by the Wyoming legislature. Mineral Royalties These are federal royalties paid to the state and passed down to cities, towns, and counties by percentages determined by the Wyoming legislature. Federal Transit Administration(FTA) The FTA provides 80% of the funding for qualifying bus system expenditures, including current and capital expenditures.

13. Revenue recognition for Water and Sewage Funds Revenue is recorded in the period in which services are provided. Residential and commercial customers are billed monthly. 14. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

15. Reclassifications Where presented, certain 2007 financial statement amounts may have been reclassified to conform to the 2008 presentation. E. Federal Audit Requirements The U.S. Office of Management and Budget (OMB) issued Circular A-133, which establishes uniform audit requirements for non-Federal entities that administer Federal awards and implements the Single Audit Act Amendments of 1996, which were signed into law July 5, 1996 (Public Law 104-156) The purposes of the Single Audit Act Amendments of 1996 are as follows:

1. promote sound financial management, including effective internal controls, with respect to Federal awards;

2. promote the efficient and effective use of audit resources; 3. reduce burdens on state and local governments, Indian tribes and

nonprofit organizations; 4. ensure that Federal departments and agencies, to the maximum extent

practicable, rely upon and use audit work done pursuant to Chapter 75 of Title 30, United States Code (the “Single Audit Act”).

For 2008, the Town of Jackson’ audit was performed in accordance with Circular A-133. The auditor’s report on consideration of the Town’s internal control over financial reporting and tests of other matters are issued with this report. F. Implementation of new accounting principles For the year ending June 30, 2008 the town has implemented the following new statement of financial accounting standards issued by the Governmental Accounting Standards Board:

Statement No. 51 Accounting and Financial Reporting for Intangible Assets

GASB Statement No. 51 updates capital assets reporting requirements. An intangible asset is an asset possessing all the following characteristics: lack physical substance, nonfinancial in nature, initial useful life extending beyond a single reporting period. Intangible assets with exhaustible useful lives are amortized and reported as depreciable capital assets in the Statement of Net Assets. Intangible assets with inexhaustible useful lives are reported as nondepreciable capital assets.

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NOTE 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are legally adopted by council resolution for all governmental and proprietary funds. Formal budgetary integration is employed as a management control device during the year for the General and Special Revenue Funds. Formal budgetary integration is not employed for the Debt Service Fund because effective budgetary control is alternately achieved through debt indenture provisions. Budgetary control for Capital Project Funds is based on a project completion time cycle rather than on an annual basis, therefore, budgetary comparisons on an annual basis would not present meaningful information. The town follows these legal compliance procedures in establishing the budgetary data reflected in the financial statements: 1. The town administrator submits a proposed operating budget to the town council prior to the end of the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and means of financing them.

2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to June 30, the budget is legally enacted through the passage of a budget resolution. 4. Management may not legally exceed budgeted expenditures at the department level. Monitoring of budgets is maintained at the division level (i.e., police administration, police investigations, police patrols, etc.) and the category level (i.e., personal services; supplies; other services and charges; capital outlay) within each division. Management can alter the budget at the division and category level within their department but cannot exceed the total budgeted expenditures for the division that was approved by the town council. Management cannot amend the budget at the department level. During the year, three formal supplementary appropriations were made. However, the town council approves all payments of vouchers and payroll at its regular meetings held twice a month. 5. All budgeted appropriations lapse at the end of the fiscal year. The legal level of budgetary control (i.e. the level at which expenditures may not legally exceed appropriations) is at the department level.

B. Excess of Expenditures over Appropriations For the year ended June 30, 2008, expenditures and other uses exceeded appropriations in no funds. Through three formal supplementary appropriations, the General Fund original budget increased by 9%. Actual expenditures and other uses are 4% under the final amended budget. C. Deficit Fund Equity At June 30, 2008, there is one governmental fund with a deficit fund balance. The $436,937 deficit fund balance in the Affordable Housing Fund will decrease with future transfers from governmental funds. NOTE 3. CASH, CASH EQUIVALENTS, AND INVESTMENTS Cash, cash equivalents, and investments at June 30, 2008 are classified in the accompanying financial statements as follows:

Statement of net assets:Cash and cash equivalents 4,626,922$ Investments 18,416,658

Statement of fiduciary assets and liabilities:Cash and cash equivalents -

Total cash and investments 23,043,580$

Cash and investments at June 30, 2008 consist of the following:

Cash: Cash on hand 200$ Deposit with financial institutions 3,593,859 Cash equivalents:

Short-term certificate of deposit 458,055 Money market funds 574,808

Investments: Various 18,416,658 Total cash, cash equivalents, and investments 23,043,580$

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Investments Authorized by Wyoming Statutes and Town Investment Policy The following table identifies the investment types that are authorized for the town by Wyoming state statute. The town’s investment policy does not restrict investment types beyond the limits set forth by state statute. The table also identifies any provisions in town policy and state statutes that address interest rate risk, credit risk, and concentration risk. This table also applies to investments of debt proceeds held by bond trustee that are governed by provisions of debt agreements and similarly restricted by state statute. Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of Portfolio in One Issuer U.S. treasury obligations None None None U.S. agency securities None None None Banker’s acceptances None 25% None Commercial paper 270 days 25% None Negotiable certificates of deposit None None $100,000 Non-negotiable certificates of deposit None None None Repurchase agreements None 25% None Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2008, the town’s investments in U.S. Agencies are rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service. The town’s investments in negotiable certificates of deposit are below the F.D.I.C. $100,000 insurance limit per institution. Non-negotiable certificates of deposits exceeding $100,000 per institution must be collateralized by the limits defined in the custodial credit risk section of this footnote. The town’s investment in the brokerage money market mutual fund is unrated. Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rate will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value is to changes in market interest rates. One way the town manages its exposure to interest rate risk is by

purchasing a combination of shorter term and longer term investments. The town also manages this risk by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide cash flow and liquidity for operations. Further, the town purchases some securities that have interest rates that step-up over time. The town monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The town has no specific limitations with respect to this metric.

WeightedAverage

MaturityInvestment Type Fair Value (in years)Federal Agencies:

Federal Home Loan Bank 6,249,022$ 1.72Federal Home Loan Mortgage 2,484,433 4.29Federal National Mortgage Assn. 1,034,861 3.91Federal Farm Credit Bank 997,733 4.61

Non-negotiable certificates of deposit 8,108,664 0.76Money Market Funds 574,808 0.12

19,449,521$ Portfolio weighted average maturity 1.87

Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to cover the value of its investment or collateral securities that are in possession of another party. Wyoming statutes do not contain legal requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: Wyoming statutes require that all town deposits be protected by insurance, surety bond, or collateral. The market value of the collateral must be a minimum of 100% of deposits not covered by insurance or bonds. Authorized collateral includes the legal investment described earlier, as well as certain first mortgage notes, and certain other state or local obligations. Wyoming statutes require that securities pledged as collateral be held in safekeeping by the public funds depositor or by any bank, other than the depository bank, chartered by the state of Wyoming, any national bank, other

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than the depository bank, authorized to do business in the state, any federal reserve bank or branch thereof, or any federal reserve system member bank.. Concentration of Credit Risk State statutes contain no limitations on the amount that can be invested in any one issuer. Investments in any one issuer representing 5% or more of the town’s total investments are as follows:

Percent of Investment

Investment Type Fair Value PortfolioFederal Agencies:

Federal Home Loan Bank 6,249,022$ 32.1%Federal Home Loan Mortgage 2,484,433 12.8%Federal National Mortgage Assn. 1,034,861 5.3%Federal Farm Credit Bank 997,733 5.1%

Non-negotiable certificates of depositBank of Jackson Hole 3,517,380 18.1%First Interstate Bank 3,000,000 15.4%Jackson State Bank 1,591,284 8.2%

Cash, cash equivalents, and investments are presented in the government-wide financial statements as follows:

Cash andCash

Equivalents Investments TotalGovernmental activities:

General Fund 719,829$ 2,915,643$ 3,635,472$ START Bus System 80,444 325,834 406,278Affordable Housing 100,914 408,749 509,6635th Cent Capital Projects 516,151 2,090,651 2,606,802Nonmajor govermental 918,370 3,399,494 4,317,864Internal service funds 226,570 1,063,133 1,289,703 Total 2,562,278 10,203,504 12,765,782

Business-type activities:Water 945,681 3,830,448 4,776,129Sewage 1,082,023 4,382,706 5,464,729Internal service funds 36,940 36,940 Total 2,064,644 8,213,154 10,277,798

Government-wide total 4,626,922$ 18,416,658$ 23,043,580$

NOTE 4. RECEIVABLES AND DEFERRED REVENUES Interfund Receivables, Payables, and Transfers. At June 30, 2008, there are interfund balances that are generally short-term loans used to cover temporary cash deficits in various funds. The interfund transfers generally are made for the purposes of distributing revenue from the general fund to other funds for capital projects and operations. There were no significant transfers during the fiscal year that were either non-routine in nature or inconsistent with the activities of the fund making the transfer. Deferred Revenues. Government funds often report deferred revenue in connection with receivables of revenue that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. This deferred revenue type is specifically referred to as unearned revenue. At the end of the current fiscal year, the various components of deferred revenue reported in governmental funds were as follows:

Alarm Court ArenaBonds Bonds Rents Total

Governmental Activities:

General Fund 18,700$ 3,000$ 21,700$ Nonmajor govermental 31,314$ 31,314 Total 18,700$ 3,000$ 31,314$ 53,014

Interfund Receivables. The following is the interfund receivables/payables at June 30, 2008:

Receivable Fund Payable Fund Amount

Sewage Fund Affordable Housing 946,600$

The town council approved the Sewage Fund loan to the Affordable Housing Fund to purchase six revolving rights of first offer from the Jackson Hole Community Housing Trust. These revolving rights provide employees meeting

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certain income requirements the ability to purchase housing. The loan is payable in annual installments at the prevailing five-year treasury rate on the June 30 payment date. The interfund interest paid and received is recorded in transfers. Accounts Receivables and Due from Other Governmental Units. The following are the accounts receivables and due from other governmental units at June 30, 2008. Due from other governmental units represent earned grant reimbursements.

Accounts Due from otherReceivable Governments

Governmental activities: General Fund 14,637$ 76,490$ START Bus System 203,919 5th Cent Capital Projects 330,562 Internal service funds 65,215 Total governmental activities 79,852 610,971Business-type activities Water Fund 97,404 Sewage Fund 97,274 Total business-type activities 194,678 Total 274,530$ 610,971$

Transfers. The following interfund transfers are reflected in the fund financial statements at June 30, 2008:

Transfers In Transfers OutGovernmental funds:

General Fund 535,213$ 2,905,895$ START 350,000 28,170 Affordable Housing 865,000 11,600 5th Cent Capital Projects 4,469,156 443,710 Nonmajor governmental 496,230 4,157,455 Total governmental funds 6,715,599 7,546,830

Enterprise funds:Water 34,821 280,893 Sewage 12,850 308,433 Total enterprise funds 47,671 589,326

Internal service funds 1,397,413 24,527 Total 8,160,683$ 8,160,683$

The following schedule reflects each fund transfer:

In Fund Out Fund AmountGeneral Fund DEA 5,098$ DARE 1,212

Victim Services 2,047 Water 249,343 Sewage 249,343 START Bus 28,170

Affordable Housing General Fund 865,000 Start General Fund 350,000 2003 Ice Arena 5th Cent Capital Projects 70,000 Vehicle Replacement 5th Cent Capital Projects 289,290

Water 11,600 Sewage 39,020

IT Equipment Replacement 5th Cent Capital projects 84,420 Water 890 Sewage 1,010

Capital Projects General Fund 1,475,890 Water 19,060 Sewage 19,060 Capital Facilities 50,229 SPET 2006 1,695,000 Vehicle Replacement 1,041,004 IT Equipment Replacement 144,386 Fleet Management 24,527

Water Vehicle Replacement 33,571 IT Equipment 1,250

Sewage Affordable Housing 11,600 IT Equipment 1,250

Employee Insurance ISF Employee Insurance SRF 994,282 General Fund 43,195

Fleet Management ISF General Fund 171,810 Fleet Management SRF 188,126

8,160,683$

SRF to ISF transfers represent the closing of special revenue funds to internal service funds.

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NOTE 5. CAPITAL ASSETS Capital asset activities for the year end June 30, 2008 are as follows:

Beginning EndingBalance Additions Deletions Balance

Governmental activities:Nondepreciable capital assets:

Land 8,902,997$ 2,893,021$ (700,000)$ 11,096,018$ Construction in progress 3,329,109 718,081 (3,163,387) 883,803 Total 12,232,106 3,611,102 (3,863,387) 11,979,821

Depreciable capital assets:Buildings and improvements 16,449,431 11,748,133 (247,689) 27,949,875Machinery and equipment 10,253,085 623,763 (86,499) 10,790,349Intangible assets 1,800,000 1,800,000Infrastructure 30,317,231 1,846,912 (235,101) 31,929,042 Total 57,019,747 16,018,808 (569,289) 72,469,266 Total capital assets 69,251,853 19,629,910 (4,432,676) 84,449,087

Less accumulated depreciation for:Buildings and improvements (6,903,690) (658,916) 32,998 (7,529,608)Machinery and equipment (5,176,939) (862,800) 86,062 (5,953,677)Intangible assets (6,177) (6,177)Infrastructure (12,139,809) (1,262,337) 149,014 (13,253,132) Total accumulated depreciation (24,220,438) (2,790,230) 268,074 (26,742,594)

Total governmental activities capital assets, net 45,031,415$ 16,839,680$ (4,164,602)$ 57,706,493$

Business-type activities:Nondepreciable capital assets

Land 1,090,000$ 1,090,000$ Construction in progress 1,178,768 1,199,377$ (1,060,902)$ 1,317,243 Total 2,268,768 1,199,377 (1,060,902) 2,407,243

Depreciable capital assets: Buildings and improvements 36,012,897 1,351,668 37,364,565Machinery and equipment 2,148,103 74,997 (8,045) 2,215,055 Total 38,161,000 1,426,665 (8,045) 39,579,620 Total capital assets 40,429,768 2,626,042 (1,068,947) 41,986,863

Less accumulated depreciation for:Buildings and improvements (11,981,977) (811,802) (12,793,779)Machinery and equipment (1,316,342) (109,546) 8,045 (1,417,843) Total accumulated depreciation (13,298,319) (921,348) 8,045 (14,211,622)

Total business-type activities capital assets, net 27,131,449$ 1,704,694$ (1,060,902)$ 27,775,241$

Depreciation was charged to function/programs of the town as follows:

Governmental acitivities:General government 358,742$ Public safety 172,187Public Works 1,645,740Culture and Recreation 198,863Transit 414,698Cemetery

Total depreciation expenses - governmental activities 2,790,230Internal service fund depreciation on capital assets charged to the various functions based on usage.

Depreciation expense excluding internal service fund. 2,790,230$

Business-type activities:Water Fund 382,474Sewer Fund 538,874

Total depreciation expenses - business-type activities 921,348$

NOTE 6. LONG-TERM LIABILITIES REVENUE BONDS. The town issued revenue bonds to provide funds for the acquisition and construction of a winter sports facility (ice arena). This bond is supported with rental payments on the facility. This revenue bond has semi-annual principal and interest payments. NOTES PAYABLE. The Wyoming Water Development Commission (WWDC) note is secured by the revenues of the Water Fund and a mortgage on the assets of the water supply system. This 25 year note is payable in equal annual installments. Revenue bonds and notes payable outstanding are as follows: Governmental activities

Final Interest Issue OutstandingRevenue Bonds Maturity Rates Amount 06/30/08Winter sports facility - 2003 Refunding bonds 04/01/19 4.30%-7.95% 1,445,000$ 1,085,000$

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Business-type activities Final Interest Issue Outstanding

Notes Payable Maturity Rates Amount 06/30/08Water supply project - 1997 WWDC note 05/01/22 4.00% 644,330$ 458,576$

Annual debt service requirements to maturity for the revenue bonds and note payable are as follows:

Year ending Governmental activities Business-type activities

June 30 Principal Interest Principal Interest

2009 70,000$ 77,889$ 22,902$ 18,343$ 2010 80,000 73,445 23,818 17,427 2011 80,000 68,295 24,771 16,474 2012 90,000 62,776 25,761 15,483 2013 90,000 56,533 26,792 14,453

2014-18 585,000 166,159 150,918 55,307 2019-23 90,000 4,136 183,614 21,679

Total 1,085,000$ 509,233$ 458,576$ 159,166$

The following is a summary of changes in long-term liabilities reported in the government-wide financial statements for the year ended June 30, 2008:

Beginning Additions/ Reductions/ Ending Due WithinBalance Proceeds Payments Balance One Year

Governmental activities: Bonds payable: Revenue bonds 1,155,000$ -$ (70,000)$ 1,085,000$ 70,000$ Governmental activities total 1,155,000 (70,000) 1,085,000 70,000

Business-type activities: Notes payable: Water 629,843 (171,267) 458,576 22,902 Business-type activities total 629,843 (171,267) 458,576 22,902Government-wide total 1,784,843$ -$ (241,267)$ 1,543,576$ 92,902$

REDEMPTIONS. On February 1, 2008, the town fully redeemed one of two notes payable to the Wyoming Water Development Commission. The 05-24-99 $180,000 note provided proceeds for the Jackson Raw Water Project. The note had 13 remaining annual principal payments totaling $142,744 with an interest rate 7.25%.

NOTE 7. RISK MANAGEMENT AND LITIGATION The town is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. For the past several years, the town obtained coverage from various sources and has effectively managed risk through various employee education and prevention programs. All risk management activities are accounted for in the appropriate fund. Expenditures and claims are recognized when it is probable that a loss has occurred, the amount of the loss can be reasonably estimated, and the loss amount exceeds insurance coverage. In determining claims, events that might create claims, but for which none have been reported, are considered. The town attorney estimates that the amount of actual or potential claims against the town as of June 30, 2008 will not materially affect the financial condition of the town. Workers compensation coverage is provided through the state of Wyoming’s Worker’s Safety and Compensation Division. The town pays an annual premium, reflecting a base rate plus an experience premium, to the division. Currently, the town does not receive any safety, deductible, or drug and alcohol discounts. Liability insurance is provided through Local Government Liability Pool (LGLP), a pooled self-insurance program. LGLP was created by the legislature specifically for local governments in Wyoming. The coverage amounts are the limits set by the Governmental Claims Act (W.S. 1-39-118). Current statutory limits are $250,000/$500,000. Excess insurance coverage provides for out-of-state claims and Federal Civil Rights claims with the current limit of $4 million with a $1 million deductible, which LGLP covers.

Property and casualty insurances are provided by WARM through a pooled self-insurance program. The WARM policy has a $5,000 deductible.

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An analysis of claims activities for the last three fiscal periods ending on June 30 is presented below:

2006 2007 2008Paid losses 5,808$ 8,491$ 21,981$ Paid expenses 49,870 17,665 3,550 Reserve losses - - - Reserve expenses 22,592 15,399 343 Total incurred 78,270 41,555 25,874

The town’s commercial insurance carrier has no set reserve losses or reserve expenses for claims filed after June 30, 2008, for incidents occurring prior to that date. There were no significant reductions in insurance from the previous year and there were no settlements in excess of insurance coverage in each of the past three years. NOTE 8. CLAIMS AND JUDGEMENTS The town participates in a number of federal and state programs that are fully or partially funded by grants received from other governmental units. Expenditures financed by grants are subject to audit by the appropriate grantor government. If expenditures are disallowed due to noncompliance with grant program regulations, the town may be required to reimburse the grantor government. As of June 30, 2008, significant amounts of grant expenditures have not been audited, but the town believes that disallowed expenditures discovered in subsequent audits, if any, will not have a material effect on any of the individual funds or the overall financial position of the town. Additionally, deferred revenues are recognized in those funds that have received grant monies in advance of future, reimbursable expenditures. NOTE 9. DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full-time and certain part-time employees of the Town of Jackson are covered by defined benefit pension plans administered by the Wyoming Retirement

System (WRS). WRS administers seven different pension plans, which are cost-sharing multiple-employer retirement plans. Of the seven plans, the Public Employee Pension Plan (PEPP) is the sole plan required for covered town employees. All seven plans are established and administered in accordance with Wyoming Retirement Act, including Wyoming Statutes 9-3-401 through 9-3-432. PEPP members belong to a coordinated plan, where all members are covered by Social Security. WRS provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after four years of credited service. The defined retirement benefits are based on a member’s highest average salary for any 36 consecutive months of allowable service, age, and years of credit at termination of service. The PEPP is a defined benefit, contributory retirement plan covering substantially all employees of the State and of the Public School Systems of Wyoming. The PEPP also covers employees of those political subdivisions, which have elected to participate in the Plan. The Plan allows for normal retirement after four years of service and attainment of age 60. Early retirement is allowed provided the employee has completed four years of service and attained age 50 but will result in a reduction of benefits based on the length of time remaining to normal retirement age. The Plan provides retirement, disability and death benefits according to predetermined formulas and allows retirees to select one of seven optional methods for receiving benefits, including two optional forms of benefits: a 100% joint and survivor annuity, and a 50% joint and survivor annuity. The benefit amounts under these options are determined on an actuarially equivalent basis. State statutes provide for future annual percentage increase in benefit amounts beginning July 1, after two full years of retirement by the lesser of 3% or the cost of living adjustment determined to be actuarially sound not to exceed 3% per year. The cost of living adjustment provided to retirees is determined by the Board. Employees terminating prior to normal retirement can elect to withdraw all employee contributions plus accumulated interest through date of termination or, if they are vested, they may elect to remain in the Plan and be eligible for retirement benefits at age 50. Under the PEPP, employees can choose full or early retirement. Employees are eligible for full retirement after they reach age 60 and complete four years of service, or meet the requirements of the “Rule of 85,” which means age plus your years of service equal 85 or more. PEPP members are eligible for early

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retirement after they reach age 50 and complete four years of service or complete 25 years of service at any age. Pension benefits for members retiring early are reduced by 5% for each year you are under age 60. During retirement, benefits will only increase when cost-of-living adjustments are granted by the WRS Board. The PEPP retirement benefits accrue at 2.125% of the average salary for each of the first 15 years and 2.25% for the average salary for every year thereafter. Currently employed and vested members in WRS (except for members of the Volunteer Fire Pension Fund and Paid Fire Plan A) may make one-time, lump-sum purchases of up to five years of service in the system. Such purchases will count as service and could move employees closer to being eligible for full retirement benefits. These purchases can be made with transfers from other retirement savings vehicles, such as deferred compensation plans. WRS issues a publicly available financial report that includes financial statements and required supplementary information for PEPP. That report may be obtained on the web at http://retirement.state.wy.us, by writing to Wyoming Retirement System, 6101 Yellowstone Road, Suite 500, WY 82002, or by calling (307) 777-7691. B. Funding Policy The PEPP statutorily requires 11.25% of the participant’s salary to be contributed to the Plan. Contributions consist of 5.68% of the participant’s salary as employer contributions and 5.57% as employee contributions. The amount of contributions designated as employee contributions represent the portion of total contributions that a participant retains ownership of and can elect to receive as a refund upon termination of employment. . Employers can elect to cover all or a portion of the employee’s contribution at their discretion. The town’s required contributions to the PEPP system for the years ending June 30, 2008, 2007, and 2006, were $246,006 $276,696 and $318,164, respectively. The town’s PEPP contributions made on behalf of employees for the years ending June 30, 2008, 2007, and 2006 were $241,242, $271,338, and $312,002, respectively. The town’s contributions were equal to the contractually required contributions for each year as set by state statute. NOTE 10. CONCENTRATION OF SALES AND REVENUES Snow King Resort and affiliates is the largest customer of the Water and Sewage. The company’s water purchases account for $69,000, or 6%, of the

Water Fund’s operating revenue; the company’s sewage charges account for $34,000, or 3%, of the Sewage Fund’s operating revenue. NOTE 11. LEASE COMMITMENTS The town leases its winter sports facility (ice arena) to a commercial entity. The 30 year non-cancelable operating lease expires May 31, 2023. The lease requires the tenant to maintain the facility’s interior and exterior and to pay all utilities. Tenant payments are based on debt service payments related to the construction of the facility. The remaining annual lease payments are as follows:

Year EndingJune 30

2009 139,499$ 2010 139,499 2011 139,499 2012 139,499 2013 139,499

2014-18 697,493 2019-23 1,453,112

Total 2,848,100$

Details for property under lease agreement are as follows:

Historical Accumulated AnnualLeased Property Carrying Cost Depreciation DepreciationWinter Sports Facility 4,203,917$ 2,101,965$ 140,131$

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NOTE 12. COMMITTED CONTRACTS At June 30, 2008, the town had the following remaining commitments for uncompleted construction contracts:

Fund/ProjectWater Fund Watermain 08-19 376,620$ Sewer Fund Gill Addition sewage line 166,876 Capital Projects N Cache Streetscape 423,870

In 2008, the town created a shared-appreciation mortgage program as a recruitment tool for key personnel. As of June 30, 2008, the town has made two commitments for a total of $575,000. On December 15, 2003, the town entered into an agreement to purchase 41.3 acres of land for a public park and natural area (Karns Meadows). The parcel consists of six tracts, with the town purchasing one tract and an option to purchase the remaining five tracts over five years beginning in 2004. In 2008, the town purchased the fifth tract. The sixth tract will be purchased in January 2009 for approximately $813,000. On December 19, 2003, the town entered into an agreement to sell one conservation easement, four options to purchase conservation easements, and one option to purchase a restrictive covenant to the Jackson Hole Land Trust on the tracts in Karns Meadows. In connection with the land and options purchase, the town entered into a lease agreement to use the land prior to exercising each option. The lease payments are $10 per year, plus taxes, utilities, and insurance. The lease will terminate if the options are not exercised in accordance with the agreement. NOTE 13. ARBITRAGE REBATE In accordance with the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended, bonds must satisfy certain arbitrage rebate requirements. Positive arbitrage is the excess of (1) the amount earned on investments

purchased with bond proceeds over (2) the amount that such investments would have earned had such investments been invested at a rate equal to the yield on the bond issue. In order to comply with the arbitrage rebate requirements, positive arbitrage must be paid to the U.S. Treasury at the end of each five-year anniversary date of the bond issue. As of June 30, 2008, there are no amounts for arbitrage rebates. NOTE 14. FUND CHANGES For the year ended June 30, 2008, the town closed the following funds: Special revenue funds - DEA, DARE, Victim Services, Employee Insurance, Public Works Shop; Capital Project Funds – Capital Facilities. For the same period, the town opened the following funds: Debt service fund – 2003 Ice Arena Bonds; Internal service funds – Employee Insurance, Fleet Management. The DEA, DARE and Victim Services Funds were closed with transfers to the General Fund at year end. The Employee Insurance and Public Works Shop special revenue funds were closed by transfers out to their respective internal service funds at the beginning of the fiscal year. The Capital Facilities Fund was closed by transfer out to the 5th Cent Capital Projects Fund at year end. NOTE 14. NEW PRONOUNCEMENTS GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. In addition to pensions, many state and local governmental employers provide other postemployment benefits (OPEB) as part of the total compensation offered to attract and retain the services of qualified employees. OPEB includes postemployment health care, as well as other forms of postemployment benefits (for example, life insurance) when provided separately from a pension plan. This Statement establishes standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of state and local governmental employers. The town is required to implement Statement 45 in its financial statement for periods beginning after December 15, 2007. GASB Statement No. 49. Accounting and Financial Reporting for Pollution Remediation Obligations. This Statement addresses accounting and financial reporting standards for pollution (including contamination) remediation

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obligations, which are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site assessments and cleanups. The scope of the document excludes pollution prevention or control obligations with respect to current operations, and future pollution remediation activities that are required upon retirement of an asset, such as landfill closure and postclosure care and nuclear power plant decommissioning.

The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2007, with measurement of pollution remediation liabilities required at the beginning of that period so that beginning net assets can be restated. However, governments that have sufficient objective and verifiable information to apply the expected cash flow technique to measurements in prior periods are required to apply the provisions retroactively for all such prior periods presented.

GASB Statement No. 50, Pension Disclosures. This Statement more closely aligns the financial reporting requirements for pensions with those for other postemployment benefits (OPEB) and, in doing so, enhances information disclosed in notes to financial statements or presented as required supplementary information (RSI) by pension plans and by employers that provide pension benefits. The reporting changes required by this Statement amend applicable note disclosure and RSI requirements of Statements No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, and No. 27, Accounting for Pensions by State and Local Governmental Employers, to conform with requirements of Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, and No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions.

This Statement is effective for periods beginning after June 15, 2007, except for requirements related to the use of the entry age actuarial cost method for the purpose of reporting a surrogate funded status and funding progress of plans that use the aggregate actuarial cost method, which are effective for periods for which the financial statements and RSI contain information resulting from actuarial valuations as of June 15, 2007, or later. Management has not yet determined the effect these Statements will have on the entity’s financial statements.

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NONMAJOR GOVERNMENTAL FUNDS

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS are used to account for revenue derived from specific taxes or other earmarked revenue sources (other than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes. Parking Exactions Fund - Established to account for the collection and distribution of development fees related to creating more public parking. Park Exactions Fund – Established to account for the collections and distribution of development fees for the purpose of creating for open recreational space within the town. Employee Housing Fund – Establish to account for the operations of town-owned rental properties. Animal Care Fund – Established to account for revenues and expenditures related to the operations of the animal shelter. Victim Services, DARE, and DEA Funds – These three funds were closed in 2008. Initially, the funds were established to reflect restrictions on program revenues. Employee Insurance and Public Works Shop Funds – These two special revenue funds were closed to Internal Service Funds with similar missions. DEBT SERVICE FUNDS are used to account for the accumulation of resources and the payment of principal and interest on general debt of the town and related entities. 2003 Ice Arena Bonds - Established to accumulate resources for the payment of principal and interest on revenue bonds of the town. Debt service is financed by winter sports facility rental revenues. CAPITAL PROJECTS FUNDS are used to account for resources used for the acquisition and construction of capital assets by the town, except for those financed by proprietary funds. Capital Facilities Fund - Established to account for the construction of street improvements financed with specific purpose excise tax revenues. This fund was closed to the 5th Cent Capital Projects Fund in 2008. 2001 and 2006 SPET Funds – These funds were established to account for voter approved capital projects financed with specific purpose excise taxes (6th cent). Vehicle and IT Replacement Funds – Established to account for resources used to finance the acquisition of capital equipment.

TOWN OF JACKSON

Combining Balance SheetNonmajor Governmental Funds by Fund TypeJune 30, 2008

Total

Special Debt Service Capital Nonmajor Revenue 2003 Ice Projects Governmental Funds Arena Bonds Funds Funds

ASSETSCash and cash equivalents 195,069$ 37,209$ 686,092$ 918,370$ Investments 620,501 2,778,993 3,399,494Interest receivable 1,175 1,175

Total Assets 816,745$ 37,209$ 3,465,085$ 4,319,039$

LIABILITIES AND FUND BALANCESLiabilities: Accounts payable 9,042$ 9,233$ 18,275$ Unearned revenue 31,314$ 31,314

Total Liabilities 9,042 31,314 9,233 49,589

Fund balances: Reserved for debt service 5,895 5,895 Unreserved, undesignated 807,703 3,455,852 4,263,555

Total Fund Balances 807,703 5,895 3,455,852 4,269,450

Total Liabilities and Fund Balances 816,745$ 37,209$ 3,465,085$ 4,319,039$

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TOWN OF JACKSON

Combining Statement of Revenues, Expenditures, and Changesin Fund Balances - Nonmajor Governmental Funds by Fund TypeYear Ended June 30, 2008

TotalSpecial Debt Service Capital NonmajorRevenue 2003 Ice Projects Governmental

Funds Arena Bonds Funds FundsRevenues: General taxes 1,843,785$ 1,843,785$ Licenses and permits 246,703$ 246,703 Investment earnings 27,598 220,749 248,347 Other revenues 223,795 87,713$ 311,508 Total Revenues 498,096 87,713 2,064,534 2,650,343 Expenditures:Current: General government 108,332 108,332 Public safety 28,342 28,342Capital outlay 166,420 10,337 176,757Debt service: Principal retirement 70,000 70,000 Interest and fiscal agent fees 81,818 81,818

Total expenditures 303,094 151,818 10,337 465,249

Excess (deficiency) of revenues over expenditures 195,002 (64,105) 2,054,197 2,185,094

Other financing sources (uses) Transfers in 70,000 426,230 496,230 Transfers out (1,190,765) (2,966,690) (4,157,455) Long-term debt issued

Total other financing sources (uses) (1,190,765) 70,000 (2,540,460) (3,661,225)

Excess (deficiency) of revenues over expenditures and other sources (uses) (995,763) 5,895 (486,263) (1,476,131)

Fund balance at beginning of year 1,803,466 3,942,115 5,745,581Fund balance at end of year 807,703$ 5,895$ 3,455,852$ 4,269,450$

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TOWN OF JACKSON

Combining Balance SheetNonmajor Special Revenue FundsJune 30, 2008

Parking Parks Employee Animal Exactions Exactions Housing Care Total

ASSETSCash and cash equivalents 2,372$ 67,034$ 61,470$ 64,193$ 195,069$ Investments 271,518 248,983 100,000 620,501Interest receivable 1,175 1,175

Total Assets 2,372$ 338,552$ 310,453$ 165,368$ 816,745$

LIABILITIES AND FUND BALANCESLiabilities: Accounts payable 7,015$ 2,027$ 9,042$

Total liabilities 7,015 2,027 9,042

Fund balances: Unreserved, undesignated 2,372$ 338,552$ 303,438 163,341 807,703

Total fund balances 2,372 338,552 303,438 163,341 807,703

Total liabilities and fund balances 2,372$ 338,552$ 310,453$ 165,368$ 816,745$

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TOWN OF JACKSON

Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue FundsYear Ended June 30, 2008

Parking Park Employee Animal Victim Exactions Exactions Housing Care Services

Revenues: Licenses and permits 2,367$ 244,336$ Investment earnings 5 11,849 13,715$ 1,970$ 16$ Other revenue: Rental charges 119,064 Other 96,823 7,908 Total revenues 2,372 256,185 132,779 98,793 7,924Expenditures: Current: General government 108,332 Public Safety 17,494 9,638 Capital outlay 166,420

Total expenditures 166,420 108,332 17,494 9,638

Excess (deficiency) of revenues over expenditures 2,372 89,765 24,447 81,299 (1,714)

Other financing sources (uses): Transfers in Transfers out (2,047)

Total other financing sources (uses) (2,047)

Excess (deficiency) of revenues over expenditures and other sources (uses) 2,372 89,765 24,447 81,299 (3,761)

Fund balance at begining of year 248,787 278,991 82,042 3,761Fund balance at end of year 2,372$ 338,552$ 303,438$ 163,341$ -$

(continued)

52

TOWN OF JACKSON

Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue FundsYear Ended June 30, 2008 (continued)

Employee Public WorksDARE DEA Insurance Shop Total

Revenues: Licenses and permits 246,703$ Investment earnings 13$ 30$ 27,598

Other revenue: Rental charges 119,064 Other 104,731 Total revenues 13 30 498,096Expenditures: Current: General government 108,332 Public safety 1,210 28,342 Capital outlay 166,420

Total expenditures 1,210 303,094

Excess (deficiency) of revenues over expenditures (1,197) 30 195,002

Other financing sources (uses): Transfers in Transfers out (1,212) (5,098) (994,282)$ (188,126)$ (1,190,765)

Total other financing sources (uses) (1,212) (5,098) (994,282) (188,126) (1,190,765)

Excess (deficiency) of revenues over expenditures and other sources (uses) (2,409) (5,068) (994,282) (188,126) (995,763)

Fund balance at begining of year 2,409 5,068 994,282 188,126 1,803,466Fund balance at end of year -$ -$ -$ -$ 807,703$

53

TOWN OF JACKSON

Parking Exactions FundSchedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualYear Ended June 30, 2008

Budgeted Amounts Variance with Orginal Final Actual Final BudgetRevenues: Licenses and permits: Parking exactions 10,000$ 10,000$ 2,367$ (7,633)$ Other revenues: Investment earnings 250 250 5 (245) Total revenues 10,250 10,250 2,372 (7,878)

Expenditures: Public works: Other - Capital outlay - - - -

Total expenditures - - - -

Excess (deficiency) of revenues over expenditures 10,250 10,250 2,372 (7,878) Fund balance at beginning of year - - - Fund balance at end of year 10,250$ 10,250$ 2,372$ (7,878)$

54

TOWN OF JACKSON

Park Exactions FundSchedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualYear Ended June 30, 2008

Budgeted Amounts Variance withOrginal Final Actual Final Budget

Revenues: Licenses and permits: Subdivision exactions 187,000$ 187,000$ 244,336$ 57,336$ Investment earnings 8,400 8,400 11,849 3,449 Total Revenues 195,400 195,400 256,185 60,785

Expenditures: Capital outlay 175,000 175,000 166,420 (8,580)

Total expenditures 175,000 175,000 166,420 (8,580)

Excess (deficiency) of revenues over expenditures 20,400 20,400 89,765 69,365

Fund balance at beginning of year 248,787 248,787 248,787Fund balance at end of year 269,187$ 269,187$ 338,552$ 69,365$

55

TOWN OF JACKSON

Employee Housing FundSchedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualYear Ended June 30, 2008

Budgeted Amounts Variance with Orginal Final Actual Final Budget

Revenues: Investment earnings 8,500$ 8,500$ 13,715$ 5,215$ Other revenues: Rental charges 103,200 103,200 119,064 15,864 Total revenues 111,700 111,700 132,779 21,079

Expenditures: General Government: Contractual services 78,700 78,700 108,332 29,632 Other expenditures 250,000 250,000 (250,000)

Total expenditures 328,700 328,700 108,332 (220,368)

Excess (deficiency) of revenues over expenditures (217,000) (217,000) 24,447 241,447

Other financing sources (uses): Transfers in Transfers out

Total other financing sources (uses)

Excess (deficiency) of revenues over expenditures and other sources (uses) (217,000) (217,000) 24,447 241,447

Fund balance at beginning of year 278,991 278,991 278,991Fund balance at end of year 61,991$ 61,991$ 303,438$ 241,447$

56

TOWN OF JACKSON

Combining Balance SheetNonmajor Capital Projects FundsJune 30, 2008

2001 2006 Vehicle IT Equipment SPET SPET Replacement Replacement Total

ASSETSCash and cash equivalents 230,558$ 173,543$ 237,982$ 44,009$ 686,092$ Investments 933,869 702,929 963,938 178,257 2,778,993

Total Assets 1,164,427 876,472 1,201,920 222,266 3,465,085

LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 9,233 9,233

Total liabilities 9,233 - - - 9,233

Fund balances: Unreserved, undesignated 1,155,194 876,472 1,201,920 222,266 3,455,852

Total fund balances 1,155,194 876,472 1,201,920 222,266 3,455,852

Total liabilities and fund balances 1,164,427$ 876,472$ 1,201,920$ 222,266$ 3,465,085$

57

TOWN OF JACKSON

Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Projects FundsYear Ended December 31, 2008

Capital 2001 2006 Vehicle IT Equipment Facilities SPET SPET Replacement Replacement Total

Revenues: Specific purpose excise tax 1,843,785$ 1,843,785$ Investment earnings 2,006$ 59,321$ 55,520 89,598$ 14,304$ 220,749

Total revenues 2,006 59,321 1,899,305 89,598 14,304 2,064,534

Expenditures: Capital outlay: Professional services 10,337 10,337

Total expenditures 10,337 10,337

Excess (deficiency) of revenues over expenditures 2,006 48,984 1,899,305 89,598 14,304 2,054,197 Other financing sources (uses): Transfers in 339,910 86,320 426,230 Transfers out (50,229) (1,695,000) (1,074,575) (146,886) (2,966,690)

Total other financing sources (uses) (50,229) (1,695,000) (734,665) (60,566) (2,540,460)

Excess (deficiency) of revenues over expenditures and other sources (uses) (48,223) 48,984 204,305 (645,067) (46,262) (486,263)

Fund balance at beginning of year 48,223 1,106,210 672,167 1,846,987 268,528 3,942,115Fund balance at end of year -$ 1,155,194$ 876,472$ 1,201,920$ 222,266$ 3,455,852$

58

INTERNAL SERVICE FUNDS

INTERNAL SERVICE FUNDS

INTERNAL SERVICE FUNDS are used to account for the financing of centralized services to town departments on a cost-reimbursement basis (including depreciation). Employee Insurance Fund – Established to account for employee self-insurance programs. Fleet Management Fund – Established to account for maintenance services provided to town vehicles and equipment. This fund also accounts for the fuel depot.

TOWN OF JACKSON

Combining Statement of Net AssetsInternal Service FundsJune 30, 2008

Employee FleetInsurance Management Total

Current assets: Cash and Cash Equivalents 262,472$ 1,038$ 263,510$ Investments 1,063,133 1,063,133 Accounts receivable (net) 28,958 36,257 65,215 Materials and supplies 250,636 250,636 Total current assets 1,354,563 287,931 1,642,494TOTAL ASSETS 1,354,563 287,931 1,642,494

LIABILITIESCurrent Liabilities: Accounts payable 72,090 72,090 Accrued wages payable 20,157 20,157 Total current liabilities 92,247 92,247TOTAL LIABILITIES 92,247 92,247

NET ASSETS Unrestricted 1,354,563 195,684 1,550,247TOTAL NET ASSETS 1,354,563$ 195,684$ 1,550,247$

59

TOWN OF JACKSON

Combining Statement of Revenues, Expenses and Changesin Fund Net Assets - Internal Service FundsYear Ended December 31, 2008


Operating revenues: Internal customers 1,511,315$ 1,078,808$ 2,590,123$ Eternal customers 382,672 382,672 Total operating revenues 1,511,315 1,461,480 2,972,795

Operating expenses: Operations and maintenance 1,241,601 1,601,205 2,842,806 Depreciation - Total operating expenses 1,241,601 1,601,205 2,842,806

Operating income (loss) 269,714 (139,725) 129,989

Nonoperating revenues (expenses) Interest revenue 47,372 - 47,372 Interest expense - - Total nonoperating revenues (expenses) 47,372 - 47,372

Income (loss) before transfers 317,086 (139,725) 177,361

Transfers in 1,037,477 359,936 1,397,413 Transfers out (24,527) (24,527)

Change in net assets 1,354,563 195,684 1,550,247

Fund net assets at beginning of yearFund assets at end of year 1,354,563$ 195,684$ 1,550,247$

60

TOWN OF JACKSON

Combining Statement of Cash FlowsInternal Service FundsYear Ended December 31, 2008


Cash flow from operating activities: Cash received from internal customers 1,511,315$ 1,078,808$ 2,590,123$ Cash received from external customers - 373,153 373,153 Cash paid to suppliers for goods and services (1,270,559) (1,090,404) (2,360,963) Cash paid to employees (507,802) (507,802) Net cash provided by operating activities 240,756 (146,245) 94,511

Cash flow from noncapital financing activities: Transfers from other funds 1,037,477 171,810 1,209,287 Transfers to other funds (24,527) (24,527) Net cash provided by noncapital financing activities 1,037,477 147,283 1,184,760

Cash flows from investing activities Interest on investments 44,748 44,748 Sale of investments Purchase of investments (1,060,509) (1,060,509) Net cash provided by investing activities (1,015,761) (1,015,761)

Increase (decrease) in cash and cash equivalents 262,472 1,038 263,510

Cash and cash equivalents - January 1Cash and cash equivalents - December 31 262,472$ 1,038$ 263,510$

Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) 269,714$ (139,725)$ 129,989$ Changes in assets and liabilities: Account receivable (28,958) (28,958) Due from other governmental units (9,519) (9,519) Materials and supplies (30,521) (30,521) Accounts payable 32,814 32,814 Accrued wages payable 706 706 Net cash provided by operating activities 240,756$ (146,245)$ 94,511$

Noncash investing, capital, and financing activities:Increase (decrease) in fair value of investments 10,815$ 10,815$

61


62

OTHER SUPPLEMENTARY SCHEDULES

TOWN OF JACKSON

Schedule of Revenues (Sources) and Expenditures (Uses)General Fund

Year Ended June 30, 2008

2008 2008 Variance withFY2006 FY2007 Original Amended FY2008 FinalActual Actual Budget Budget Actual Budget

Revenue and other sources - summary:Taxes 2,306,296$ 2,671,553$ 2,808,430$ 2,808,430$ 2,731,124$ 77,306$ Licenses & Permits 812,847 659,035 739,000 827,000 890,474 (63,474) Intergovernmental Revenue 6,908,412 8,067,082 9,330,770 9,202,710 9,025,769 176,941 Charges for Services 22,480 19,737 23,250 23,250 24,792 (1,542) Fines & Forfeitures 137,745 200,012 207,000 237,000 208,049 28,951 Miscellaneous Revenue 119,247 264,609 242,500 321,900 340,266 (18,366) Other Financing Sources 7,245 - - - - - Interfund Transfers 812,701 596,992 640,290 640,290 535,213 105,077 Total Revenues & Other Sources 11,126,972 12,479,020 13,991,240 14,060,580 13,755,687 304,893

- Revenue and other sources - detail: - Taxes - Local option sales tax 1,895,957 2,214,802 2,324,250 2,324,250 2,281,218 43,032 Franchise taxes - Franchise tax - electric 77,922 94,434 - - 100,607 (100,607) Franchise tax - gas 99,153 108,288 - - 92,927 (92,927) Franchise tax - cable 132,341 119,748 - - 123,047 (123,047) Franchise tax - trash 70,089 102,978 - - 103,579 (103,579) Franchise tax - phone 29,549 29,671 - - 27,697 (27,697) Franchise tax - recycling 1,285 1,632 - - 2,049 (2,049) Franchise tax - general - - 484,180 484,180 - 484,180 Licenses & Permits - Business licenses 242,196 251,944 260,000 260,000 254,569 5,431 Liquor licenses 107,956 105,916 108,000 108,000 103,915 4,085 contractor licenses 7,230 7,540 7,500 7,500 11,370 (3,870) COQ license renewal 7,938 2,890 8,000 8,000 4,082 3,918 Building permits 328,817 149,886 225,000 225,000 225,551 (551) Sign permits - - - - 535 (535) Mechanical permits - - - - 1,016 (1,016) Plumbing permits - - - - 1,015 (1,015) Excavation permits - - - - 17,050 (17,050) Electrical permits - - - - 24,751 (24,751) Development permits/fees 60,115 86,916 80,000 80,000 101,961 (21,961) Variance permits - - - - 1,200 (1,200)

continued…

63

TOWN OF JACKSON


Year Ended June 30, 2008 (continued)


Final plat - - - - 1,000 (1,000) Grading/erosion permits 1,400 1,700 1,500 1,500 2,800 (1,300) Demo permits - - - - 500 (500) Animal licenses 938 843 1,000 1,000 659 341 Encroachment fees 16,257 11,400 8,000 96,000 98,500 (2,500) Rodeo contract fees 40,000 40,000 40,000 40,000 40,000 - Intergovernmental Revenue State grant - tobacco compliance - - - - 4,250 (4,250) State grant - alcohol compliance - - - - 6,460 (6,460) State grants - police 9,200 15,150 - 7,500 13,536 (6,036) DCI grant - - - 23,800 23,802 (2) WYDOT planning grant - pathways 44,000 - - - - - 4% state sales tax 5,036,698 5,221,303 5,565,000 5,565,000 5,522,009 42,991 4% state use tax 368,160 446,659 505,250 505,250 449,706 55,544 Gasoline tax 272,783 236,364 255,000 255,000 268,264 (13,264) cigarette tax 59,752 59,788 55,000 55,000 58,485 (3,485) Severance tax 403,516 413,112 415,000 415,000 393,866 21,134 Federal mineral royalties 479,422 479,818 480,000 480,000 480,123 (123) Sales tax replacement - 310,479 381,300 381,300 381,759 (459) State shared - section 316 - 620,946 620,950 620,950 620,681 269 State shared - section 328 - - 321,880 321,880 321,849 31 County reimbursement 147,381 157,115 214,320 244,320 180,971 63,349 County reimbursement - WYDOT - - 170,660 - - County - split on joint departments - - 215,290 215,290 187,204 28,086 Victim witness grant 87,500 106,348 131,120 112,420 112,804 (384) Charges for Services Alarm bond income 3,450 2,500 4,000 4,000 4,275 (275) VIN inspections 4,377 4,444 4,500 4,500 5,347 (847) Plan review fees 12,183 9,053 12,250 12,250 10,750 1,500 Cemetery fees 2,470 3,740 2,500 2,500 4,420 (1,920) Fines & Forfeitures Enforcement fines & fees 18,094 17,490 20,000 20,000 15,162 4,838 Parking tickets 66,448 122,342 130,000 130,000 114,297 15,703 Summons & complaints 40,704 45,180 40,000 70,000 78,590 (8,590) Court bonds 12,500 15,000 17,000 17,000 - 17,000

continued…

64

TOWN OF JACKSON




Miscellaneous Revenue Investment earnings 86,426 213,543 175,000 175,000 209,830 (34,830) Animal shelter equipment rentals 3,082 3,710 3,500 3,500 5,645 (2,145) Public education reimbursement 7,875 11,671 10,000 10,000 13,184 (3,184) Contributions & donations - - 21,000 100,400 40,354 60,046 Contributions & donations - - - - 9,400 (9,400) Miscellaneous revenue 21,819 35,804 33,000 33,000 61,837 (28,837) Cash over/(short) 45 (119) - - 16 (16) Other Financing Sources Sale of fixed assets 7,245 - - - - - Interfund Transfers Indirect cost allocations - utilities 483,879 507,258 612,120 612,120 498,686 113,434 Indirect cost allocations - Start bus 20,144 26,026 28,170 28,170 28,170 - Special revenue funds - - - - 8,357 (8,357) Capital project funds 308,677 63,708 - - - - Total revenues and other sources 11,126,972 12,479,020 13,991,240 14,060,580 13,755,687 304,893

- Expenditures and other uses - summary: - General government 2,450,986 2,594,599 2,890,506 3,003,933 2,862,097 141,836 Public safety 3,965,069 4,499,078 5,204,478 5,348,170 5,286,309 61,861 Public works 1,305,554 1,415,160 1,813,890 1,828,304 1,592,788 235,516 Health & welfare 472,935 551,740 604,460 604,460 583,890 20,570 Community development 416,083 408,227 510,190 533,490 567,169 (33,679) Recreation and culture 1,185,838 1,223,234 1,484,521 1,509,660 1,448,723 60,937 General unallocated 227,188 230,688 236,430 286,350 256,097 30,253 Transfers out and other uses 595,530 789,321 1,987,895 2,962,895 2,905,895 57,000 Total expenditures and other uses 10,619,183 11,712,047 14,732,370 16,077,262 15,502,968 574,294

Expenditures and other uses - divisions:General government Mayor & town council 210,937 213,983 224,598 232,830 230,173 2,657 Town attorney 152,311 151,838 178,362 197,410 192,405 5,005 Municipal judge 56,816 121,867 142,750 109,831 95,253 14,578 Administration 320,326 339,160 325,243 284,500 252,155 32,345 Personnel & town clerk 376,006 369,880 373,551 437,420 400,088 37,332

continued…

65

TOWN OF JACKSON




Finance 428,632 463,772 471,903 449,312 442,609 6,703 Information technology 384,418 350,544 525,735 531,380 495,073 36,307 Planning 368,455 395,243 496,397 583,330 583,087 243 Planning commission/board of adjust 8,464 9,296 10,610 10,610 8,145 2,465 Energy coordinator (county service) - - - - - - Town hall building 144,621 179,016 141,357 167,310 163,109 4,201 Public safety Police 2,467,602 2,688,315 2,981,447 3,104,479 3,184,901 (80,422) Fire/EMS (county service) 597,980 846,370 1,064,230 1,064,230 1,047,017 17,213 Dispatch (county service) 388,802 372,375 478,220 478,220 370,114 108,106 Victim services 132,689 135,818 184,280 171,350 168,554 2,796 Animal shelter/control 149,168 179,965 200,546 211,360 198,747 12,613 Building inspections 228,828 276,235 295,755 318,531 316,976 1,555 Public works Streets 765,959 773,139 997,495 960,814 908,327 52,487 Town engineer 353,628 425,241 413,265 464,360 456,709 7,651 Public works yard operations 107,259 137,142 143,820 143,820 134,568 9,252 Parking garage operations - - 160,980 160,980 22,534 138,446 Public restrooms 43,708 44,638 58,330 58,330 30,650 27,680 Recycling center & HHWCF 35,000 35,000 40,000 40,000 40,000 - Health and welfare Social services 472,935 551,740 604,460 604,460 583,890 20,570 Community development Community promotion 416,083 408,227 510,190 533,490 567,169 (33,679) Recreation and culture Parks & recreation (county service) 1,023,330 1,123,871 1,276,620 1,276,620 1,276,620 - Pathways operations 146,888 87,203 185,458 210,350 155,173 55,177 Memorial park (cemetery) 15,619 12,160 22,443 22,690 16,930 5,760 General unallocated Town-wide services 166,908 165,831 171,790 221,710 191,593 30,117 Insurances 60,280 64,857 64,640 64,640 64,504 136 Transfers out and other uses Transfers out 595,530 789,321 1,987,895 2,962,895 2,905,895 57,000 Total expenditures & other uses 10,619,183$ 11,712,047$ 14,732,370$ 16,077,262$ 15,502,968$ 574,294$

Revenue over/(under) expenditures 507,789$ 766,973$ (741,130)$ (2,016,682)$ (1,747,281)$ (269,401)$

66

STATISTICAL SECTION

STATISTICAL SECTION

The Statistical Section (unaudited) is included to provide detailed data on the physical, economic, social and political characteristics of the reporting government. It is intended to provide the user with a broader and more complete understanding of the government and its financial affairs than is possible from the basic financial statements and supplementary information included in the Financial Section.

Page

Financial trendsNet Assets by Component - Last Six Fiscal Years 67Changes in Net Assets - Last Six Fiscal years 68Fund Balances of Governmental Funds - Last Six Fiscal Years 70Changes in Fund Balances of Governmental Fund - Last Six Fiscal Years 71

Revenue capacityTax Revenues by Source - Last Ten Fiscal years 72Unrestricted State Intergovenmental Revenues by Program - Last Ten Fiscal Years 73Tax Capacity and Estimated Market Value of all Taxable Property - Last Ten Fiscal Years 74Property Tax Rates - All Direct and Overlapping Governments - Last Ten Fiscal Years 75Taxable Sales - Last Seven Years 76

Debt capacityLegal Debt Margin Information - Last Ten Fiscal Years 77Schedule of Revenue Bond Coverage - Water Fund 78

Demographic and economic informationConstruction and Bank Deposits - Last Ten Years 79Demographic & Economic Statistics 80Demographic Statistics - US Census Data 81

Operating informationFull-time Equivalent Town Employees by Function/Program - Last Ten Fiscal Years 82Operating Indicators by Function - Last Six Fiscal Years 83Capital Asset Statistics by Function - Last Three Fiscal Years 84

TOWN OF JACKSON

Net Assets by ComponentLast Six Fiscal Years(accrual basis of accounting)

2003 2004 2005 2006 2007 2008

Governmental activitiesInvested in capital assets, net of related debt 35,962,516$ 38,273,356$ 38,801,623$ 39,850,369$ 43,876,416$ 56,621,493$ Restricted 49,241 305,410 979,856 1,627,405 1,048,307 1,827,361 Unrestricted 13,334,905 13,913,942 14,660,262 15,685,472 16,032,378 8,701,716

Total governmental activities net assets 49,346,662$ 52,492,708$ 54,441,741$ 57,163,246$ 60,957,101$ 67,150,570$

Business-type activitiesInvested in capital assets, net of related debt 26,616,687$ 26,894,838$ 26,874,345$ 26,597,738$ 26,501,605$ 27,316,665$ Restricted - - - - - - Unrestricted 9,506,709 9,955,359 10,616,756 11,689,953 11,803,246 10,901,750

Total business-type activates net assets 36,123,396$ 36,850,197$ 37,491,101$ 38,287,691$ 38,304,851$ 38,218,415$

Primary governmentInvested in capital assets, net of related debt 62,579,203$ 65,168,194$ 65,675,968$ 66,448,107$ 70,378,021$ 83,938,158$ Restricted 49,241 305,410 979,856 1,627,405 1,048,307 1,827,361 Unrestricted 22,841,614 23,869,301 25,277,018 27,375,425 27,835,624 19,603,466

Total primary government net assets 85,470,058$ 89,342,905$ 91,932,842$ 95,450,937$ 99,261,952$ 105,368,985$

Note: The city implemented GASB 34 for the financial reporting period ending June 30, 2003.

Primary Government Net Assets

$-$10$20$30$40$50$60$70$80$90

2003 2004 2005 2006 2007 2008

Mill

ions

Capital Assets Net ofDebtRestricted Net Assets

Unrestricted Net Assets

67

TOWN OF JACKSON

Changes in Net AssetsLast Six Fiscal Years(accrual basis of accounting)

2003 2004 2005 2006 2007 2008ExpensesGovernmental activities:

General government 3,202,953$ 3,252,096$ 3,598,294$ 3,306,461$ 3,319,013$ 3,362,182$ Public safety 3,531,761 3,574,060 3,830,914 4,345,111 5,556,415 5,510,599 Public works 2,938,396 3,416,536 3,204,796 3,218,403 3,167,186 4,399,793 Transit 1,392,961 1,615,091 1,753,644 2,123,532 2,618,091 3,102,306 Health and welfare 314,104 407,820 471,795 472,935 563,644 618,939 Community development 309,123 365,160 407,851 465,926 1,548,727 596,007 Recreation and culture 986,623 1,175,550 1,244,144 1,345,500 1,588,132 1,843,538 Interest on long-term debt 143,211 96,412 85,677 87,356 84,465 81,371

Total governmental activities expenses 12,819,132 13,902,725 14,597,115 15,365,224 18,445,673 19,514,735

Business-type activitiesWater utility 1,193,238 1,380,862 1,315,052 1,387,884 1,486,522 1,226,527Sewer utility 1,592,010 1,781,203 1,726,630 1,798,989 1,920,157 1,667,979

Total business-type activities expenses 2,785,248 3,162,065 3,041,682 3,186,873 3,406,679 2,894,506Total primary government expenses 15,604,380$ 17,064,790$ 17,638,797$ 18,552,097$ 21,852,352$ 22,409,241$

Program RevenuesGovernmental activities:

Charges for services:General government 512,370$ 689,014$ 631,718$ 629,232$ 694,202$ 644,564 Public safety 614,243 287,391 360,398 446,813 269,459 555,174 Public works 141,916 64,569 - - 17,050 Transit 216,994 288,083 353,811 475,422 462,620 676,350 Community development 58,946 72,730 18,378 128,563 73,093 180,237 Recreation and culture 179,944 202,882 239,723 215,108 242,426 376,469

Operating grants and contributions 1,278,909 1,601,051 1,478,244 1,667,488 3,273,890 2,072,332 Capital grants and contributions 229,126 965,474 1,143,712 1,691,873 2,536,860 2,170,728

Total governmental activities program revenues 3,232,448 4,171,194 4,225,984 5,254,499 7,552,550 6,692,904

Business-type activities:Charges for services:

Water utility 1,178,455 1,231,322 1,215,638 1,211,759 1,223,758 1,165,971 Sewage utility 1,385,589 1,727,576 1,190,094 1,076,951 1,125,438 1,139,658

Operating grants and contributions - - - - Capital grants and contributions 39,134 71,552 1,026,999 1,071,392 510,578 516,335

Total business-type activities program revenues 2,603,178 3,030,450 3,432,731 3,360,102 2,859,774 2,821,964 Total primary government program revenues 5,835,626$ 7,201,644$ 7,658,715$ 8,614,601$ 10,412,324$ 9,514,868$

(continued)

68

TOWN OF JACKSON

Changes in Net AssetsLast Six Fiscal Years(accrual basis of accounting)

2003 2004 2005 2006 2007 2008

Net (expense)/revenueGovernmental activities (9,586,684)$ (9,731,531)$ (10,371,131)$ (10,110,725)$ (10,893,123)$ (12,821,831)$ Business-type activities (182,070) (131,615) 391,049 173,229 (546,905) (72,542)Total primary government net expense (9,768,754)$ (9,863,146)$ (9,980,082)$ (9,937,496)$ (11,440,028)$ (12,894,373)$

General Revenues and Other Changes in Net AssetsGovernmental activities:

TaxesLocal option sales taxes 3,764,707$ 3,866,923$ 4,074,087$ 4,447,724$ 4,673,695$ 4,921,587$ Specific purpose excise taxes 252,540 657,359 629,395 911,755 660,694 1,843,785 Franchise taxes 365,824 394,942 387,482 410,338 456,751 449,906

Unrestricted grants and contributions 5,559,742 5,314,514 6,625,049 6,788,694 7,788,470 9,372,899 Investment earnings 500,099 366,653 341,417 449,338 900,124 659,512 Other 116,709 182,068 259,863 97,823 137,308 135,648Gain on sale of capital assets 1,090,309 Transfers 80,641 72,102 2,869 (273,442) 69,936 $541,655

Total governmental activities 10,640,262 10,854,561 12,320,162 12,832,230 14,686,978 19,015,301Business-type activities

Investment earnings 361,851 292,031 252,725 349,917 634,002 527,761Extraordinary gain from extingushment of debt 638,487Transfers (80,641) (72,102) (2,869) 273,442 (69,936) (541,655)

Total business-type activities 281,210 858,416 249,856 623,359 564,066 (13,894)Total primary government 10,921,472$ 11,712,977$ 12,570,018$ 13,455,589$ 15,251,044$ 19,001,407$

Changes in Net AssetsGovernmental activities 1,053,578$ 1,123,030$ 1,949,031$ 2,721,505$ 3,793,855$ 6,193,470$ Business-type activities 99,140 726,801 640,905 796,588 17,161 (86,436) Total primary government 1,152,718$ 1,849,831$ 2,589,936$ 3,518,093$ 3,811,016$ 6,107,034$

Note: The city implemented GASB 34 for the financial reporting period ending December 31, 2003.

69

TOWN OF JACKSON

Fund Balances of Governmental FundsLast Six Fiscal Years(modified accrual basis of accounting)

2003 2004 2005 2006 2007 2008

General FundReserved -$ -$ 61,962$ 65,437$ 78,709$ 7,691$ Unreserved 3,436,883 3,436,883 3,388,540 3,892,853 4,646,555 2,970,292

Total general fund 3,436,883 3,436,883 3,450,502 3,958,290 4,725,264 2,977,983

All other governmental fundsReserved 5,895Unreserved, reported in:

Special revenue funds 2,176,360 2,487,400 3,111,119 3,319,380 2,690,170 835,319 Capital project funds 7,883,712 7,231,511 8,100,113 10,056,166 9,685,422 5,216,297

Total all other governmental funds 10,060,072$ 9,718,911$ 11,211,232$ 13,375,546$ 12,375,592$ 6,057,511$

70

TOWN OF JACKSON

Changes in Fund Balances of Governmental FundsLast Six Fiscal Years(modified accrual basis of accounting)

2003 2004 2005 2006 2007 2008RevenuesGeneral Taxes 4,383,072$ 4,919,225$ 5,090,964$ 5,769,817$ 5,791,140$ 7,215,278$ Special Assessments 126,533 Licenses and permits 767,820 769,785 804,070 943,777 760,883 1,315,047 Intergovernmental 6,837,730 8,106,313 8,664,130 9,811,232 11,687,943 13,182,488 Charges for services 552,188 568,325 528,242 652,343 702,135 701,142 Fines and forfeitures 282,803 229,735 141,240 137,745 200,012 208,049 Investment earnings 640,018 366,653 341,417 449,338 900,124 612,140 Other revenues 217,297 373,565 438,727 279,253 1,420,290 733,365 Total revenues 13,807,461 15,333,601 16,008,790 18,043,505 21,462,527 23,967,509

ExpendituresGeneral government 2,469,453 2,330,067 2,348,223 2,499,098 2,851,978 2,970,429 Public Safety 3,329,709 3,402,969 3,784,014 4,256,556 4,920,524 5,314,651 Public Works 1,286,044 1,503,685 1,474,155 1,334,889 1,472,076 1,592,788 Transit 1,266,505 1,431,060 1,513,704 1,841,298 2,247,790 2,662,753 Health and welfare 314,104 407,820 471,795 472,935 367,501 583,890 Community development 309,123 365,160 407,851 465,926 448,225 607,169 Culture and recreation 771,158 976,385 1,044,979 1,146,335 2,301,898 1,448,723 Other 284,090 364,056 359,814 357,883 353,817 256,097 Capital outlay 2,583,996 5,596,050 3,924,042 5,023,486 7,567,950 15,613,322 Debt service

Principal 1,437,136 105,000 60,000 60,000 65,000 70,000 Interest 119,212 93,969 90,503 88,013 85,253 81,818 Other charges 36,854

Total all other governmental funds 14,207,384 16,576,221 15,479,080 17,546,419 22,682,012 31,201,640

Excess (deficiency) of revenues over (under) expenditures (399,923) (1,242,620) 529,710 497,086 (1,219,485) (7,234,131)

Other financing sources (uses)Transfers in 4,698,913 3,671,176 3,853,468 5,650,062 9,842,982 6,715,599 Transfers out (4,236,464) (3,190,202) (3,392,683) (5,419,482) (9,245,643) (7,546,830) Sale of capital assets 509,295 515,445 1,679,052 4,050 - Total other financing sources (uses) 462,449 990,269 976,230 1,909,632 601,389 (831,231)

Net change in fund balances 62,526$ (252,351)$ 1,505,940$ 2,406,718$ (618,096)$ (8,065,362)$

Debt service as % of noncapital expenditures 13.4% 1.8% 1.3% 1.2% 1.0% 1.0%

71

TOWN OF JACKSON

Tax Revenues by SourceLast Ten Fiscal Years (modified accrual basis of accounting)

1% Local Specific UnrealizedSales and Franchise Purpose Property Property Tax

Year Use Tax (1) Tax (2) Excise Tax (3) Tax (4) Total Revenue (5)

1999 2,649,823$ 298,645$ 1,134,502$ -$ 4,082,970$ 785,493$ 2000 3,136,987 315,632 444,385 - 3,897,004 881,045 2001 3,306,591 338,931 854,125 - 4,499,647 1,041,645 2002 3,692,490 350,901 269,197 - 4,312,588 1,123,342 2003 3,764,707 365,824 252,540 - 4,383,071 1,185,307 2004 3,866,923 394,492 657,358 - 4,918,773 1,251,822 2005 4,074,087 387,482 629,395 - 5,090,964 1,371,743 2006 4,447,724 410,338 911,755 - 5,769,817 1,527,322 2007 4,673,695 456,751 660,694 - 5,791,140 1,705,159 2008 4,291,588 449,906 1,843,785 - 6,585,279 2,228,102

Change1999-2008 38.3% 33.6% 38.5% --- 38.0% 64.7%

Notes: (1) The local option sales and use tax is divided between the General and Capital Projects funds.(2) Franchise fees are 5% of gross revenues for gas, electric, cable, telephone, and trash collection.(3) Specific Purpose Excise Taxes are restricted to specific voter approved projects.(4) The town does not levy property taxes.(5) The property tax revenue that could be raised by levying 8 mills on the town's assessed valuation.

Source: Administration and Finance

72

TOWN OF JACKSON

Unrestricted State Intergovernmental Revenues Last Ten Fiscal Years (modified accrual basis of accounting)

4% Backfill,Sales & Gasoline Cigarette Severance Mineral Over-the-cap

Year Use Tax (1) Tax (2) Tax (3) Tax (4) Royalities etc. Total

1999 3,319,254$ 200,914$ 87,268$ 162,287$ 439,807$ -$ 4,209,530$ 2000 3,503,218 215,525 83,065 260,249 468,811 - 4,530,868 2001 3,692,039 151,165 65,398 638,448 454,728 - 5,001,778 2002 4,137,306 196,082 64,740 461,816 497,565 - 5,357,509 2003 4,395,097 260,063 58,680 389,476 456,426 - 5,559,742 2004 4,521,981 283,056 51,230 376,982 451,692 - 5,684,941 2005 4,620,406 260,803 58,702 386,294 473,076 - 5,799,281 2006 5,404,858 272,783 59,752 403,516 479,422 - 6,620,331 2007 5,667,962 236,364 59,788 413,112 479,818 1,183,979 8,041,023 2008 5,971,715 268,263 58,465 393,865 480,123 1,632,856 8,805,287

Change1999-2008 79.9% 33.5% -33.0% 142.7% 9.2% --- 109.2%

Notes: (1) As of June 30, 2004, the 4% state sales and use tax is distributed 69% to the state and 31% to cities, towns and counties proportionately to population.(2) The gasoline tax is distributed 57.5 to the state, 13.5% and 14% to counties, and 15% to cities and towns. City and town distributions are based 75% on proportionate sales in cities and towns and 25% on proportionate populations for the same.(3) The cigarette tax is distributed 33 1/3% to incorporated cities, towns, and counties proportionately to sales derived in each. The remaining 66 2/3% is distributed 38 1/4% to the state's general fund and the remaining 61 3/4% is distributed in the preceding manner.(4) The severance tax distribution to cities and towns is 9.25% of the total in the state severance tax distribution tax account (up to $155,000,000) in proportion to population.


73

TOWN OF JACKSON

Tax Capacity and Estimated Market Value of all Taxable PropertyLast Ten Fiscal Years(Unaudited)

Real Property Personal Property TotalEstimated Estimated Estimated % of

Assessed Market Assessed Market Assessed Market MarketYear Value Value Value Value Value Value Value

1999 93,148,135$ 980,506,684$ 5,038,537$ 53,037,232$ 98,186,672$ 1,033,543,916$ 9.5%2000 104,467,108 1,099,653,768 5,663,575 59,616,579 110,130,683 1,159,270,347 9.5%2001 124,452,749 1,310,028,937 5,752,904 60,556,884 130,205,653 1,370,585,821 9.5%2002 134,621,579 1,417,069,253 5,796,148 61,012,084 140,417,727 1,478,081,337 9.5%2003 142,167,201 1,496,496,853 5,996,203 63,117,926 148,163,404 1,559,614,779 9.5%2004 149,996,349 1,578,908,937 6,481,410 68,225,368 156,477,759 1,647,134,305 9.5%2005 164,621,369 1,732,856,516 6,846,504 72,068,463 171,467,873 1,804,924,979 9.5%2006 183,761,885 1,934,335,632 7,153,314 75,298,042 190,915,199 2,009,633,674 9.5%2007 206,198,880 2,170,514,526 6,945,980 73,115,579 213,144,860 2,243,630,105 9.5%2008 272,195,947 2,865,220,495 6,316,807 66,492,705 278,512,754 2,931,713,200 9.5%

Source: County Assessor

Note: The Town of Jackson does not levy a property tax. State statutes gives the town authority to levy taxes up to 8 mills (.008) on assessed valuation.

Total Estimated Market ValueReal and Personal Property (millions)

$175$675

$1,175$1,675$2,175$2,675$3,175

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

74

TOWN OF JACKSON

Property Tax Rates - All Direct and Overlapping GovernmentsLast Ten Fiscal Years(Unaudited)

Mill Rates

School Teton State CountyYear Town District County School School Hospital Other Total

1999 0.00 27.45 9.11 12.00 6.00 3.00 2.73 60.292000 0.00 26.89 9.11 12.00 6.00 3.00 2.61 59.612001 0.00 27.43 8.92 12.00 6.00 3.00 2.37 59.722002 0.00 26.75 8.92 12.00 6.00 3.00 2.37 59.042003 0.00 26.35 9.36 12.00 6.00 3.00 2.43 59.142004 0.00 26.40 9.64 12.00 6.00 3.00 2.15 59.192005 0.00 26.40 9.62 12.00 6.00 3.00 2.17 59.192006 0.00 26.30 9.82 12.00 6.00 3.00 2.07 59.192007 0.00 26.40 9.60 12.00 6.00 3.00 2.29 59.292008 0.00 26.40 8.07 12.00 6.00 3.00 1.95 57.42

2006 0.66

Notes: The Town does not levy any mills for property taxes. It has statutory authorization to levy a maximum of 8 mills.

Mill RatesFor the three highest taxing authorities

05

1015202530

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

State School School District Teton County

75

TOWN OF JACKSON Taxable Sales by Major Business Class, Teton CountyLast Seven Years (Unaudited)

Category 2002 2003 2004 2005 2006 2007 2008

Agriculture, forestry, fishing & hunting 3,047,525$ 2,360,975$ 1,605,350$ 905,725$ 418,625$ 450,700$ 371,150$ Mining 1,190,800 814,800 1,007,050 1,690,850 977,275 1,626,125 1,604,200 Utilities - - - 26,548,650 29,704,900 30,521,950 35,243,000 Construction 15,842,300 11,230,225 9,950,475 9,314,000 10,668,725 15,437,100 16,788,025 Manufacturing 20,303,100 23,715,050 10,079,600 13,384,200 14,807,125 14,553,675 13,154,075 Transportation/Communication 39,718,875 40,682,000 55,317,200 Wholesale trade 36,049,575 39,374,450 31,830,325 28,658,350 26,755,600 38,882,750 45,502,650 Retail trade 370,453,775 376,799,125 405,649,950 328,649,150 357,201,600 349,615,475 352,245,825 Transportation and warehousing - - - 3,118,800 3,827,950 3,498,850 3,998,450 Information - - - 24,021,150 24,313,375 21,335,475 20,185,350 Finance, Insurance, and real estate 6,100,375 3,231,775 6,782,950 Services 206,832,550 216,160,550 213,006,900 Government 28,661,325 25,893,475 25,890,125 Finance and insurance - - - 219,400 818,025 257,225 311,925 Real estate and rental and leasing - - - 44,363,150 50,599,750 60,633,125 61,324,525 Professional, scientific, and technical - - - 10,781,400 12,023,825 10,729,650 10,731,925 Management of companies - - - - - - - Administrative and support and waste - - - 2,085,425 3,002,750 2,826,600 2,644,900 Educational services - - - 65,475 89,975 25,200 59,400 Health care and social assistance - - - 111,675 144,075 (208,125) 36,100 Arts, entertainment, and recreation - - - 7,605,300 9,084,325 8,962,875 14,187,650 Accommodation and food services - - - 258,948,625 287,535,875 302,652,775 337,130,700 Other services - - - 20,711,300 23,668,625 26,216,800 27,920,700 Public administration - - - 27,582,825 28,061,150 30,018,950 29,117,000

728,200,200$ 740,262,425$ 761,119,925$ 808,765,450$ 883,703,550$ 918,037,175$ 972,557,550$

Note: Sales are derived by dividing sales tax collections by the 4% sales tax rate in each industry classification (SIC coding for 2005-2008 and NAICS coding for 2002-2004).

Source: Wyoming Department of Revenue

76

TOWN OF JACKSON

Legal Debt Margin InformationLast Ten Fiscal Years(Unaudited)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Assessed market value 98,186,672$ 110,130,683$ 130,205,653$ 140,417,727$ 148,163,404$ 156,477,759$ 171,467,873$ 190,915,199$ 213,144,860$ 278,512,754$

Total debt 11,258,468$ 2,118,838$ 2,249,355$ 2,249,085$ 2,187,336$ 2,047,938$ 1,963,091$ 1,877,079$ 1,784,843$ 1,543,576$

Deductions:Debt - Notes payable - water fund 9,372,044 776,034 776,034 754,358 731,676 707,938 683,091 657,079 629,843 458,576 Revenue bonds 1,340,000 1,280,000 1,220,000 1,155,000 1,085,000

Debt service funds: Cash, securities, and - restricted cash Less amount applicable to excluded bonds -

Total net debt applicable to debt limit 1,886,424$ 1,342,804$ 1,473,321$ 1,494,727$ 1,455,660$ -$ -$ -$ -$ -$

Debt limit is 4% of assessed value 3,927,467$ 4,405,227$ 5,208,226$ 5,616,709$ 5,926,536$ 6,259,110$ 6,858,715$ 7,636,608$ 8,525,794$ 11,140,510$

Legal Debt Margin 2,041,043$ 3,062,423$ 3,734,905$ 4,121,982$ 4,470,876$ 6,259,110$ 6,858,715$ 7,636,608$ 8,525,794$ 11,140,510$

Total net debt applicable to limit as a precentage of debt limit 48.0% 30.5% 28.3% 26.6% 24.6% 0.0% 0.0% 0.0% 0.0% 0.0%

77

TOWN OF JACKSON

Schedule of Revenue Bond CoverageWater Fund(Unaudited)

Water Fund:Net Revenue

Gross Operating Available forYear Revenues (1) Expenses(2) Debt Service Principal Interest Total Coverage

2003 1,404,053$ 818,277$ 585,776$ 22,680$ 35,855$ 58,535$ 102004 1,370,173 984,842 385,331 23,737 34,830 58,567 72005 1,331,884 921,562 410,322 24,848 33,719 58,567 72006 1,437,891 987,579 450,312 26,012 32,555 58,567 82007 1,508,357 1,367,030 141,327 27,236 31,331 58,567 22008 1,399,798 1,112,365 287,433 28,523 30,044 58,567 5

Notes(1) Total revenues including interest.(2) Total operating expenses excluding depreciation.


Debt Service Requirements

78

TOWN OF JACKSON

Construction and Bank DepositsLast Ten Years(Unaudited)

Bank DepositsNew New Percent

Year Commercial Residential All Other Total Total of Change

1999 9 22 84 115$ 510,000,000$ 12.3%2000 22 36 114 172 541,000,000 6.1%2001 13 32 106 151 589,000,000 8.9%2002 19 30 111 160 694,000,000 17.8%2003 18 34 130 182 761,000,000 9.7%2004 14 53 120 187 858,000,000 12.7%2005 14 53 138 205 993,000,000 15.7%2006 12 48 99 159 1,160,000,000 16.8%2007 13 27 80 120 1,350,000,000 16.4%2008 15 30 86 131 1,559,000,000 15.5%

Source: Building Official, FDIC

BUILDING PERMITS

New Commercial and ResidentialNumber of Permits

9 22 13 19 18 14 14 12 13 1522

36 32 3034

53 5348

27 30

0

15

30

45

60

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

COMMERCIAL RESIDENTIAL

79

TOWN OF JACKSON

Demographic and Economic StatisticsLast Six Years(Unaudited)

EducationPer Level in

Personal Capita Years of Pop- Unemploy- School Income (4) Personal Formal Median

Year ulation (1) ment rate (2) Enrollment (3) (thousands) Income (5) Schooling Age

2003 8,834 3.0% 2,248 1,495,390 58,733 n/a n/a2004 8,944 2.9% 2,296 1,625,306 62,787 n/a n/a2005 9,111 2.7% 2,270 1,880,620 71,195 n/a n/a2006 9,193 2.5% 2,265 2,044,217 76,405 n/a n/a2007 9,399 2.4% 2,219 2,242,116 81,629 n/a n/a2008 9,631 1.9% 2,270 n/a n/a n/a n/a

Sources: (1) State of Wyoming(2) Wyoming Department of Employment(3) Wyoming Department of Education(4) & (5) U. S. Department of Commerce - Bureau of Economic Analysis releases micropolitan statistical area data 15 months after year end.

80

TOWN OF JACKSON

Demographic StatisticsU.S. Census Data(Unaudited)

Population Changes:

1920 307 Age Characteristics: Total % Total Total % Total1930 533 Under 5 years 326 7% 469 5%1940 1,046 5-9 years 283 6% 424 5%1950 1,244 10-14 years 248 6% 437 5%1960 1,437 15-19 years 237 5% 465 5%1970 2,688 20-24 years 355 8% 1,005 12%1980 4,511 25-34 years 1,113 25% 2,226 26%1990 4,472 35-44 years 875 20% 1,550 18%2000 8,647 45-54 years 409 9% 1,091 13%

55-59 years 175 4% 296 3% 60-64 years 133 3% 183 2%

65-74 years 179 4% 262 3%75-84 years 109 2% 153 2%85 years and older 30 1% 86 1%

Total 4,472 100% 8,647 100%

Population Characteristic: 1990 % Total 2000 % TotalUnder 20 1,094 24% 1,795 21%20 and over 3,378 76% 6,852 79%

4,472 100% 8,647 100%

Miscellaneous:Median Age: 32.0 years 30.8 yearsHousehold size: 2.33 people 2.35 peopleNumber of households: 1,884 units 3,631 units

Source: U.S. Census Bureau

1990 2000

1990 2000

Census Data by Decade

0

1

23

4

5

6

78

9

10

1920 30 40 50 60 70 80 90 2000

Tho

usan

ds

81

TOWN OF JACKSON

Full-time Equivalent Employees by Function/ProgramLast Ten Fiscal Years(Unaudited)

Function 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

General Government:Town Attorney 1.00 1.00 1.00 1.00 2.00 2.00 1.00 1.00 1.30 1.30Municipal Judge 1.00 1.00 1.04 1.04 0.83 0.50 0.50 0.50 1.50 1.50Administration 1.00 2.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00Town Clerk/Personnel 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00Finance 6.50 6.50 7.50 7.50 7.50 7.10 6.30 4.30 4.40 4.40Planning 5.75 6.00 7.00 7.00 6.00 5.00 5.00 5.00 4.70 4.70Information Technology 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.00 3.00 3.00Town Hall Building 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Public Safety:Police 28.50 29.50 30.75 30.75 30.25 30.75 29.25 27.33 28.42 30.42Building Inspection 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00Victim Witness 0.00 0.00 0.00 0.00 0.00 0.00 2.50 2.50 2.50 2.50Animal Shelter 1.25 1.25 1.25 2.25 2.28 2.17 2.17 2.17 2.47 2.75

Public WorksStreets 6.30 8.65 8.50 8.50 8.50 8.50 8.50 8.50 9.42 9.89Town Engineer 2.50 2.50 3.50 3.50 3.50 3.00 3.00 4.00 4.00 4.00Water O&M 2.50 3.63 3.73 3.50 3.50 4.00 4.00 4.00 4.00 4.00Water Billing & Accounting 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25Sewer Plant Operation 4.00 4.63 4.73 4.50 4.50 4.50 4.50 4.50 4.50 4.50Sewer O&M 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00Sewer Billing & Accounting 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25

Fleet Management 3.20 5.00 5.00 5.00 5.00 5.00 5.00 5.00 6.00 6.00Transit

Start Bus 17.40 20.00 25.04 25.05 24.42 25.45 25.37 29.47 29.20 31.20Culture & Recreation:

Pathways Operations 0.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00

Total Full-Time Equivalents 92.40 103.16 113.53 114.09 112.77 113.47 111.59 115.77 119.90 124.65


Full-time Equivalent Employees as of June 30

82

TOWN OF JACKSON

Operating Indicators by FunctionLast Three Fiscal Years(Unaudited)

Function 2003 2004 2005 2006 2007 2008

General GovernmentSpecial events na na 52 50 48 63

PoliceTotal arrests 579 652 721 675 603 678 Total part 1 offenses 99 47 65 80 90 63 DUI arrests 128 137 242 125 99 203 UCR Incidents reported 291 375 213 na 406 365 Incidents cleared 27 70 13 na 101 66 Arrest, cited, or summoned 15 na 7 na 89 62

Fire/EMSMedical calls 933 815 848 979 1,139 1,068 Fire calls 58 39 30 57 32 48 Hazardous materials calls 21 40 35 43 27 38 Service calls 31 42 58 23 30 56 False alarms 77 54 82 107 42 118 Fire inspections 1,894 1,557 1,395 1,519 1,299 1,772 Electrical inspections 2,906 1,987 2,715 2,532 2,677 2,504

Water UtilityAnnual Tap water billed (millions) 593 859 683 893 1,013 942Number of water meters billed 2,953 3,064 3,211 3,347 3,472 3,526

TransitRevenue miles 347,379 431,627 441,945 475,857 519,536 605,118Passengers 342,030 400,270 505,832 589,369 650,052 811,807Accidents 3 11 7 6 12 8

Source: Various town departments

Year Ending June 30,

83

TOWN OF JACKSON

Capital Assets Statistics by FunctionLast Three Fiscal Years(Unaudited)

Function 2006 2007 2008

General governmentTown halls 1 1 1

Public safetyStations 1 1 1

StreetsStreet (miles) 33.8 33.8 33.8 Paved alleyways 0.8 0.8 0.8 Gravel alleyways 4.3 4.3 4.3 Parking garages 1

Recreation and cultureParks 12 12 12 Indoor Ice arenas 1 1 1 Aquatics center 1 1 1

Water utilityWell pump stations 7 7 7 Water mains (miles) 64.0 64.0 64.0 Water tanks 3 3 3 Fire hydrants 433 433 433

Sewage utilitySanitary sewers (miles) 57.1 57.1 57.1 Maximum daily treatment capacity (thousands of gallons) 5,000 5,000 5,000 Lift stations 5 5 5 Manholes 1,203 1,203 1,203

Source: Various town departments

Year Ending June 30,

84

GOVERNMENT AUDIT REPORTS

December 23, 2008


Report on Compliance and on Internal Control over Financial

Reporting based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

The Honorable Mayor and Members of the Town Council of Jackson, Wyoming: We have audited the basic financial statements of Town of Jackson, Wyoming, as of and for the year ended June 30, 2008 and have issued our report thereon dated December 23, 2008. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Town of Jackson, Wyoming’s general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have direct or material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. However, we noted certain instances of non compliance that we have reported to management of the Town of Jackson, Wyoming in a separate letter dated December 23, 2008. Internal control over financial reporting In planning and performing our audit, we considered Town of Jackson, Wyoming’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial

reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect Town of Jackson, Wyoming’s ability to record, process, summarize and report financial data consistent with the assertions of management in the general purpose financial statements. Reportable conditions are described in the accompanying schedule of findings and questioned costs. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described is a material weakness. We also noted other matters involving the internal control over financial reporting that we have reported to management of Town of Jackson, Wyoming in a separate letter dated December 23, 2008. This report is intended solely for the information and use of the Town Council, Administration, Wyoming Department of Audit and federal awarding agencies and is not intended to be and should not be used by anyone other than these specified parties.


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December 23, 2008


Report on Compliance with Requirements Applicable

to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133

The Honorable Mayor and Members of the Town Council of Jackson, Wyoming: Compliance We have audited the compliance of Town of Jackson, Wyoming, with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2008. Town of Jackson, Wyoming’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of Town of Jackson, Wyoming’s management. Our responsibility is to express an opinion on Town of Jackson, Wyoming’s compliance based on our audit. We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Town of Jackson, Wyoming’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Town of Jackson, Wyoming’s compliance with those requirements. In our opinion, Town of Jackson, Wyoming complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2008.

Internal control over compliance The management of Town of Jackson, Wyoming, is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Town of Jackson, Wyoming’s internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of Town Administration, others within the organization, Town Council and federal awarding agencies and is not intended to be and should not be used by anyone other than these specified parties.


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TOWN OF JACKSON SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2008 SUMMARY OF AUDIT RESULTS 1. The auditor’s report issued an unqualified opinion on the basic financial

statements on the Town of Jackson, as of June 30, 2008. 2. The audit disclosed no items considered a reportable condition in internal

controls. 3. The audit disclosed no instances of non compliance that were material to

the financial statements taken as a whole. 4. The auditor’s report on compliance for the major federal award programs

for the Town of Jackson expresses an unqualified opinion on all major federal programs.

5. The audit did not disclose any audit findings relating to major programs which are required to be reported.

6. The programs tested as major programs were the Department of

Transportation-National Scenic Byways CFDA No. 20.205 and Department of Transportation-Federal Highway Administration – Wyoming Department of Transportation Rural Public Transit Program CFDA No. 20.509.

7. The threshold for distinguishing Types A and B programs was $300,000. 8. The Town of Jackson was considered to be a low risk auditee.

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TOWN OF JACKSONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2008 TOTAL

CFDA AWARDGRANTOR/GRANT TITLE NUMBER AMOUNT EXPENDITURES

GENERAL FUND

US Department of Justice passed through theWyoming Crime Victim Compensation Committee

Victim of Crimes Act (VOCA) 16.575 54,437$ 54,437$

US Department of Justice passed through theWyoming Division of Criminal Investigation

JAG Grant 16.738 42,000 23,802

US Department of Housing and Urban Developmentpassed through the Wyoming Business Council

Wyoming Development Block GrantSub-recipient: Square One Project 14.228 810,000 30,234

Sub-recipient: El Puente 14.228 33,250 6,556

Total General Fund 939,687$ 115,029$

CAPITAL PROJECTS FUND

US Department of Homeland Security passed through theWyoming Office of Homeland Security

Homeland Security Grant 97.067 29,246$ 28,464$

Bureau of Land Management passed through the National Fish and Wildlife Foundation

Rehabilitation of Flat Creek 15.231 36,579 36,579

US Department of Transportation Federal Highway Administration passed through the Wyoming Department of Transportation

National Scenic Byways Grant 20.205 2,633,309 365,268

Total Capital Projects Fund 2,699,134$ 430,311$

(continued)

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TOWN OF JACKSONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2008 (continued) TOTAL


SPECIAL REVENUE FUND

US Department of TransportationFederal Transit Administration

FTA G-11Bus Garage and shelters 20.500 495,015$ 46,503$

US Department of TransportationFederal Transit Administration passed through the

Wyoming Department of TransportationWyoming Rural Public Transit Funding

FTA 07062Capital Investment ProgramPurchase of bus shelters 20.500 180,460 180,460

FTA 07107Capital Investment ProgramPurchase of modular office 20.500 160,000 30,406

FTA 07056Section 5311Intercity Grant - Alpine Commuter 20.509 18,405 18,405

FTA 07035Section 5311Administration and Operating Expenses 20.509 84,926 84,926

FTA 08035Section 5311Administration and Operating Expenses 20.509 1,032,420 1,032,420

FTA 08053Section 5311Rural Public Transit Program 20.509 58,888 58,888

(continued)

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TOWN OF JACKSONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE YEAR ENDED JUNE 30, 2008 (continued) TOTAL



Wyoming Department of TransportationWyoming Rural Public Transit Funding

FTA - VehiclePurchase of bus 20.513 30,000$ 30,000$

FTA 08073United We Stand 20.514 652 652

FTA 07066Transportation Planning Program 20.515 16,000 16,000


Idaho Transportation Department - Division ofPublic Transportation

ID 18X 023 20.509 66,812 45,681 ID 18X 024 20.509 40,539 4,307

Total Special Revenue Fund 2,184,117$ 1,548,648$

Total Federal Awards 5,822,938$ 2,093,988$

NOTE 1 – BASIS OF PRESENTATION

The accompanying schedule of expenditures of federal awards includes the federal grant activity of Town of Jackson, Wyoming and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basicfinancial statements.

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The End

TOWN OF JACKSON, WYOMING

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